Kinetic Group plans to spend US$11.7 million to publicly acquire FLUID tokens to help agency DeFi

Kinetic Group plans to purchase US$11.7 million in FLUID tokens through the open market to boost institutional DeFi

Kinetic Group, a digital asset manager based in the United Arab Emirates, announced that it plans to acquire tokens that account for up to 10% of the total FLUID supply through the open market, which is approximately US$11.69 million based on current market prices. The move is part of a broader strategic partnership between Kinetic Group's AGI3 platform and the Fluid Foundation to expand decentralized finance (DeFi) services for institutional investors.

Strategic cooperation targeting institutional adoption

According to a proposal released at the Fluid Governance Forum, Fluid's collaboration with AGI3 will focus on developing DeFi infrastructure for traditional financial institutions, including sovereign wealth funds, banks, family offices and asset management companies. The initiative aims to bridge the gap between traditional finance and decentralized protocols by providing secure, compliant and scalable DeFi solutions.

Kinetic Group's investment is intended to express confidence in the long-term value of FLUID and provide liquidity to institutional participants entering the DeFi space. In addition to this purchase, the Fluid Foundation plans to allocate an additional 5% of the total FLUID supply to support institutional custody adoption, further enhancing the ecosystem's appeal to regulated entities.

Market Reaction and Token Performance

After the announcement, the FLUID token price rose approximately 9.5% to $1.16, according to data from CoinMarketCap at the time of writing. The positive response from the market reflects growing investor interest in projects that actively attract institutional capital through structured cooperation and transparent governance proposals.

Open market buying strategies (rather than private placement or over-the-counter transactions) have attracted much attention for their transparency and potential to reduce market volatility. By gradually acquiring tokens on a public exchange, Kinetic Group can accumulate positions without triggering sharp price fluctuations.

Impact on the DeFi industry

This development highlights the broader trend of institutional investors seeking compliance into the DeFi space. Traditional financial entities have always been cautious about decentralized agreements, mainly worried about custody, compliance and liquidity issues. By partnering with a United Arab Emirates asset manager and allocating dedicated supplies for institutional custody, Fluid is positioning itself as a bridge between the two worlds.

United Arab Emirates has become a favorable jurisdiction for digital asset innovation, with a clear regulatory framework and a positive attitude towards blockchain adoption. Kinetic Group's participation adds regional credibility and regulatory familiarity and may appeal to other institutional participants in the Middle East and beyond.

Conclusion

Kinetic Group plans to purchase $11.7 million worth of FLUID tokens through the open market, a major vote of confidence in the project's institutional-level DeFi strategy. Combined with the Fluid Foundation's parallel allocation of custody adoption, this cooperation marks an intentional push to bring traditional financial participants into a decentralized ecosystem. The positive market response suggests that investors are optimistic about this institution-focused approach, but long-term success will depend on enforcement and regulatory coordination.

FAQs

Question 1: Why did Kinetic Group choose to purchase FLUID tokens on the open market rather than through private placement?

Open market purchases allow Kinetic Group to accumulate tokens in a transparent and gradual manner, reducing the risk of sudden price spikes or market manipulation. At the same time, this also shows confidence in the liquidity of the open market for tokens.

Question 2: What is the AGI3 platform? How does it relate to this cooperation?

AGI3 is a platform owned by Kinetic Group that focuses on institutional-level digital asset services. In this cooperation, AGI3 will work with Fluid to develop DeFi products specifically designed for sovereign wealth funds, banks and other traditional financial institutions.

Question 3: How will the additional 5% allocated FLUID supply be used for institutional hosting?

The Fluid Foundation plans to use this supply to support institutional custody adoption, which may include working with regulated custodians or providing incentives for institutions to hold and pledge FLUID in a secure and compliant environment.