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Andre Cronje’s Flying Tulip Token Trades Near $1B FDV Floor

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Andre Cronje’s Flying Tulip Token Trades Near $1B FDV Floor

The FT token arrives after the project raised close to $300 million in funding.

The Flying Tulip (FT) token became transferable and began trading today, Feb. 23, marking the token generation event (TGE) for the latest DeFi project linked to Andre Cronje, a systems architect best known for building early DeFi protocols Yearn Finance and Fantom.

Data from CoinGecko shows that despite an initial dip to around $0.08, FT has spent its first hours trading sideways around the $0.10 mark, implying a fully diluted valuation of around $1 billion.

FT Public Sale, Explained

Flying Tulip’s public sale price was set at $0.10, but it wasn’t a standard token sale. The project’s tokenomics make $0.10 something like a floor price for the asset trading on the open market, as public sale participants have the right to break even on their investment at any time.

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Early buyers didn’t just get regular tokens but received ftPUTs, which are non-fungible tokens with a built-in perpetual put option, which gives holders the right, under certain rules, to redeem their tokens at the public sale price of $0.10, instead of having to sell them on the open market.

As Cronje explained earlier this month in an X post, given the project’s tokenomics, “Flying Tulip FDV is not standard FDV.” Typically, FDV is calculated by multiplying total token supply multiplied by current token price.

But Flying Tulip departs from that model because each FT token is only created if it is backed by a corresponding put option, leaving no path for unbacked supply to enter circulation. When tokens are redeemed, they’re also removed from circulating supply.

That tokenomics design means every token is effectively collateralized by its own $0.10, making the system “closer to a NAV valuation than FDV,” Cronje highlighted, adding, “this is something new, and aligns participation far more than any previous model.”

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Flying Tulip is positioned as a DeFi “super app,” aiming to bring spot trading, perpetual derivatives and lending into a single interface.

Ahead of the launch, Flying Tulip wasn’t short on cash. The project had already pulled in $200 million in September last year from backers including Brevan Howard and DWF Labs, then added another tens of millions through later rounds and public sales on platforms such as Impossible Finance and CoinList.

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Crypto World

South Korea Tightens Crypto Rules with 5-minute Asset Verification Mandate

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South Korea Tightens Crypto Rules with 5-minute Asset Verification Mandate

South Korea has ordered all crypto exchanges to reconcile their internal ledgers with actual asset holdings every five minutes after an inspection uncovered weaknesses in internal controls.

The directive was announced on Monday by the Financial Services Commission (FSC) after a meeting with top crypto exchanges and the Digital Asset Exchange Alliance (DAXA), during which they discussed the findings of an emergency inspection triggered by the Bithumb payout incident.

The inspection found that three of the country’s five major exchanges were reconciling balances only once every 24 hours, limiting their ability to respond quickly to discrepancies. Systems designed to halt trading during major mismatches were also found to be insufficient, raising concerns about how exchanges would handle large-scale errors.

In February, Bithumb mistakenly distributed 620,000 Bitcoin (BTC) to 249 users during a promotional event. The exchange later announced that it recovered 99.7% of the funds the same day. The remaining 0.3%, 1,788 BTC that had already been sold, was covered using company reserves.

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Related: Bithumb seeks to reappoint CEO despite recent controversies: Report

South Korea mandates five-minute asset checks

Under the new measures, exchanges must implement automated ledger-to-wallet reconciliation systems operating on a five-minute cycle. They will also be required to introduce defined criteria for triggering automatic transaction halts in the event of significant discrepancies.

Beyond reconciliation, regulators are pushing for sweeping changes to internal operations. High-risk processes like promotional payouts will require stronger oversight, including third-party cross-checks and multi-level approval systems. Exchanges will also need to separate high-risk accounts and implement automated verification tools for payments.

Top Korean crypto exchanges. Source: CoinGecko

Furthermore, external audits will shift from quarterly to monthly, while disclosures will expand to include detailed asset balances by wallet and ledger.

“The financial authorities and the DAXA plan to complete the rule changes needed to implement the improvement measures within April this year,” the FSC wrote.

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Related: South Korean brokerage Korea Investment & Securities eyes Coinone stake: Report

Bithumb delays IPO to post-2028

Last week, Bithumb announced it is now targeting an IPO after 2028, marking another delay from its earlier 2025 plans as it works through restructuring and regulatory pressure. The exchange said it will focus on strengthening accounting policies and internal controls through 2027, following an advisory agreement with Samjong KPMG.

Meanwhile, Naver Financial has also delayed its planned share swap with Dunamu by about three months, now targeting a shareholder vote on Aug. 18 and completion by Sept. 30.

Magazine: South Korea gets rich from crypto… North Korea gets weapons

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