Sonic Labs Bets on U.S. Expansion with ETFs, Nasdaq PIPE, and Deflationary Token Model

Sonic Labs is making a strategic push into the U.S. market, backed by a near-unanimous community vote. The expansion includes establishing Sonic USA LLC, opening a New York office, and launching Wall Street-focused products like ETFs and a $100 million Nasdaq PIPE program. The MOVE aims to attract institutional investors by offering compliant entry points and custody standards for its S token.

The expansion comes with risks, including token dilution from fresh issuance. Sonic Labs has allocated $50 million to ETFs/ETPs and 150 million S tokens to fund its U.S. entity. To counter supply pressure, the project has introduced a deflationary fee mechanism, redirecting 90% of FeeM transactions to builders and 5% to validators.

The U.S. pivot could unlock significant institutional capital but also introduces new challenges. Sonic Labs’ ability to balance dilution with deflationary incentives will be critical to its success in the competitive crypto landscape.