Sonic Approves $150M Token Issuance for Groundbreaking US ETF Goals and Institutional Adoption

Sonic, formerly known as Fantom, has approved a $150 million token issuance to fund a US ETF initiative, investment program, and Delaware-registered company. The plan includes a private investment in public equity (PIPE) structure and revising fee mechanisms to burn more tokens. Community approval was nearly unanimous, with 99.99% in favor. S token is consolidating within a symmetrical triangle pattern, with resistance at $0.34-$0.35 and support near $0.29.

Sonic, formerly known as Fantom, has approved a significant $150 million token issuance to fund a U.S. expansion strategy. The plan includes the creation of a $50 million ETF initiative, a $100 million investment program, and the establishment of a Delaware-registered company. The community overwhelmingly supported the proposal, with 99.99% of participants voting in favor [1].

The new issuance aims to address the limitations of Sonic's "2018 tokenomics," which involved the Fantom Foundation giving away most of its supply to the community. This structure left the foundation holding just 3% of tokens at launch, compared to 50%–90% held by peers. The team argued that this structure hobbled its ability to fund listings on crypto exchanges, acquisitions, and partnerships [1].

The ETF initiative will involve a regulated provider with over $10 billion in assets under management, with custody handled by BitGo. The PIPE vehicle aims to seed a Nasdaq-listed entity’s balance sheet with S tokens locked for at least three years in exchange for strategic treasury purchases. Additionally, the network level will see fees redirected to burn more tokens and reduce inflation, a nod to token holder demands for deflationary pressure [1].

The approval of this plan positions Sonic to compete directly in the ETF and traditional finance arena. The company will also establish Sonic USA LLC, set up a team in New York, and appoint a U.S.-based CEO to spearhead financial partnerships and regulatory engagement in Washington, D.C. [1].

The S token is currently consolidating within a symmetrical triangle pattern, with resistance at $0.34-$0.35 and support near $0.29. Despite the recent fall of nearly 69% since its January launch, Sonic is seeking to reverse momentum by embedding itself deeper in both crypto and traditional finance [3].

References:
[1] https://finance.yahoo.com/news/sonic-community-approves-150m-token-080449979.html
[2] https://en.coinotag.com/sonics-s-token-could-fund-200m-push-into-us-tradfi-etp-and-nasdaq-vehicle/
[3] https://thecoinrise.com/sonic-labs-secures-200m-s-token-approval-to-enter-u-s-capital-markets/