Sonic: ETFs will only be issued if the price of S is above $0.50 and the size will not exceed $50 million.
PANews reported on December 27th that Sonic Labs has released an updated announcement regarding its ETF token allocation execution plan, clarifying new execution constraints:
1. ETF allocations will only be minted when the price of S is above $0.50, corresponding to a maximum of 100 million tokens;
2. The issuance size is limited to a maximum of US$50 million, with priority given to issuing smaller quantities at higher price levels;
3. Any execution that deviates from the above conditions will not occur.
Sonic Labs also emphasized that the S tokens used in the ETF will be locked within the regulated product and will not enter the secondary market for circulation, thus avoiding any additional selling pressure. The team stated that US-listed ETFs remain a long-term strategic priority, aiming to provide institutional investors with compliant Sonic exposure, and any future adjustments will continue to be implemented through clear communication and governance processes.
Previously, the Sonic community passed a governance proposal authorizing up to $50 million worth of S tokens for a potential US-listed ETF to facilitate its entry into the regulated US market. However, following the proposal's passage, due to a weakening overall market environment and a significant decline in the price of S, Sonic Labs decided to postpone implementation and did not mint any related tokens during this period to avoid increasing supply at unfavorable price levels.
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