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Gnosis (GNO) price jumped double-digits in early trading on Monday, reaching highs of $327 on major crypto exchange Coinbase.
The token has, however, pared its 24-hour gains to about 6% at the time of writing, with GNO/USD changing hands around $310.
Why did the Gnosis price rise sharply today?
Gnosis price rose more than 15% on Friday, helped by the broader crypto market surge that included Bitcoin’s flip to above $67,000.
As major coins hovered at respective key levels on Monday, Gnosis defied weakness. It gained as most small cap altcoins struggled, rising by nearly 10% in early trading.
The upside coincided with the Gnosis DAO announcement that the community was considering a key proposal on GNO token.
In particular, crypto fund Thanefield Capital has outlined a Gnosis improvement proposal that seeks to have a large-scale buyback program for the GNO token adopted.
Thanefield Capital believes the Gnosis DAO should deploy $30 million towards the buyback program. The GIP 100 proposal seeks the deployment to be spread over a six-month period.
What does the new Gnosis proposal say?
Per the proposal, Gnosis is “significantly undervalued relative to its book value.”
The current valuation therefore suggests a negative value to the assets held by Gnosis DAO.
These include assets in Gnosis Chain, Gnosis Pay, and Gnosis Wallet. There’s also a venture capital portfolio of more than 40 companies and investment in four crypto VCs, Thanefield noted.
“Gnosis DAO is well-positioned to address this undervaluation as one of the most capitalized DAOs, holding over $630 million in assets and ranking second only to Mantle in terms of non-native marketable tokens. We propose initiating a substantial buyback program to correct this disparity,” the crypto fund wrote in the proposal.
According to details on the governance forum page, GIP 100 has received early support with 17 of 20 votes in favour.
GNO price at key level
The price of GNO could surge further amid the development, which has received the backing of Gnosis co-founder Martin Köppelmann.
Having traded around $266, Gnosis’s surge to above $300 represents a significant flip in bullish sentiment.
Bouncing off the key horizontal support zone also means that buy pressure could allow bulls to target $350 and possibly $400.
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