Many investors wonder how Dogecoin and Shiba Inu both rose to the top of the cryptocurrency charts without much functionality. These tokens increased in value due to investors' expectation that other people will buy at higher prices, not because the projects have actually added value through innovative technology. The most important catalyst for the success of these doggy-themed cryptocurrencies is likely Elon Musk, the incredibly famous CEO of Tesla Inc. (NASDAQ: TSLA). When Musk announced that he would adopt a Shiba Inu puppy and named it Floki, a new crypto called Floki Inu was created in less than 24 hours.
Floki Inu may break the mold of useless doggie-themed meme coins because it will have some innovative use cases. If Shiba Inu and Dogecoin performed so well without being useful, Floki could blow them out of the water. Shiba is integrated into the decentralized finance (DeFi) platform ShibaSwap on Ethereum, but it doesn’t bring anything new. Floki is still a small crypto and certainly not a safe bet of any kind. It is an extremely risky altcoin with a few controversial elements.
What is Floki Inu?
Floki Inu is an ERC-20 token on the Ethereum network. Currently, it can’t be used for much beyond simple price speculation. However, the Floki team is planning on building an entire non-fungible token (NFT)-based game run by the token called Valhalla. NFT games like Decentraland and Axie Infinity have become some of the most popular platforms in the crypto community. If Valhalla turns out to be interesting, fun or at least profitable as a game, it could drive Floki to unseen heights.
The tokenomics of Floki Inu are quite similar to Shiba Inu and Dogecoin with a few major exceptions. It has a huge token supply of about 9.4 trillion tokens and is what the team likes to call hyper-deflationary. Deflationary cryptos like Floki remove more tokens from circulation than they add by sending them to an inaccessible wallet (or burn wallet). When supply decreases and demand stays the same, the price will increase. However, demand doesn’t stay constant, and just because a token is deflationary doesn’t mean the price will go up.
Floki removes tokens by a controversial transaction tax that takes 8% of every Floki buy or sell transaction. Half of this tax is sent to holders, including the burn wallet, proportional to how many Floki they have. As more tokens are burned, the rate of burning increases because the burn wallet is constantly getting more Floki. The other half of this 8% tax goes directly into a wallet controlled by the Floki team, who set it aside for marketing purposes. These measures could help the project inordinately, or it could just hurt Floki users too much by taking 8% of all their buy and sell transactions.
Floki Inu Market Position
Floki Inu, despite its recent eruption in popularity, price and coverage, is still a small cryptocurrency. One of the most telling metrics to watch, especially with smaller cryptos like Floki, is market capitalization. Market cap is the circulating supply of tokens times the price per token. It’s by no means a perfect metric and doesn’t accurately represent the real value of the asset, but it can still be useful. If you want to know how much an asset could reasonably appreciate in the short- to medium-term, it's important to take market cap into account. Large market cap assets will rise much less with the same trading volume than those with small market caps.
Floki Inu has a market cap of about $75 million at the time of writing. Compared to its main competitors with the same Shiba Inu mascot, this amount is tiny. Shiba Inu is relatively massive with a $6 billion market cap and Dogecoin is almost 2 times Shiba’s size at about $11 billion. Because Floki has such a small market cap, it is more sensitive to drastic price fluctuations. It could rise incredibly fast or crash just as quickly. It makes the token riskier, but also makes it possible for immense returns.
WalletInvestor’s Bull Case for Floki Inu
WalletInvestor’s main product is its machine-learning-based price forecasting algorithm. It can be used to predict the prices of most cryptos and many traditional financial assets. Its predictions cannot be perfect because no one can perfectly predict the price of volatile assets, even artificial intelligence. However, tools like WalletInvestor’s can provide reasonable estimates that can help make informed decisions about investments.
WalletInvestor forecasts that Floki Inu will reach about $0.000314 by the middle of October 2022. This amount would be a significant gain for the token but is certainly possible due to Floki Inu’s relatively low market capitalization. WalletInvestor also includes a 5-year forecast for Floki. It predicts that it will reach about $0.00130 by the beginning of October 2026. Of course, the accuracy is limited because 2026 is far in the future, but it might be a good estimate.
Ian Bezek Bear Case for Floki Inu
Ian Bezek, a contributor for InvestorPlace, believes that Floki Inu and its doggie counterparts are little more than a fad. He says they can be great for traders to buy and sell in the short and medium term but that they won’t be viable assets in the long term. He also says that the short-term nature of these meme coins may mean that Floki Inu may shove Shiba Inu aside in the public imagination. If it does, it will likely be a bad sign for all meme coins because it will show that there isn’t much lasting interest in these cryptos. Floki Inu has the benefit of a more direct tie to Musk himself, but it could still easily fail to interest enough potential users and buyers.
Where to Buy Floki Inu
Floki Inu is still a new and unproven cryptocurrency, so it hasn’t been listed on many of the best trading platforms yet. One of the top exchanges offering Floki Inu is Gate.io, although the token isn’t available for U.S. traders. If you can’t buy it on Gate.io, your best option is likely a decentralized exchange (DEX) like Uniswap.
Before you can buy Floki Inu on Uniswap you will need to buy Ether on a top exchange like Coinbase Global Inc. (NASDAQ: COIN), Gemini, Voyager or Crypto.com. Then you can send your Ether to a personal wallet, either hardware or software, and navigate to Uniswap. Finally, find Floki Inu, enter the amount of Ether you want to spend and complete the transaction.
Fast Track Your Purchase With Dharma
To many, using a decentralized exchange can be intimidating. These applications can be hard to navigate, and it involves sending cryptocurrencies between different wallets to complete your transaction. Dharma is a mobile app for iOS and Android that makes buying cryptocurrency from decentralized exchanges easy. Simply download the app, fund your account, and you’re ready to invest in any cryptocurrencies available on decentralized exchanges. No need to transfer your funds across wallets –– you can complete the entire transaction through Dharma’s mobile app!
How Long Will it Take for Floki Inu to Reach $0.01?
How high can Floki Inu go? The community around the Shiba Inu-themed meme coins seems to discuss this question regularly. They discuss when they think Floki Inu will reach $0.01 or when Dogecoin will reach $1. Often the theories are stated as an easy-to-reach goal that is inevitable because that's how it seems to many investors.
The token supplies of Dogecoin, Shiba Inu and Floki Inu are all much higher than most cryptos, making it harder for them to reach $1 or even $0.01. Because of the simple principle of supply and demand, the price of a single doggie token will be lower than 1 Ether because there are so many more available tokens. Market cap can be a useful metric here. If Floki Inu reached $0.01, its market cap would be close to $100 billion, and it would be the 3rd largest crypto today. Floki Inu could still reach $0.01 if it gains widespread adoption, although that would likely take more than 5 years. It may rise even faster like Dogecoin did over the last 2 years, but this outcome is still extremely unlikely.
Where to Store Floki Inu Safely
Many crypto investors, especially those who just started, often store their tokens on the exchange they use. Over the last decade, hundreds of millions of dollars have been stolen from users through trading platform hacks. Most of the top exchanges, including Gate.io, employ immense security to prevent cyberattacks, but they can’t be perfectly safe.
You can purchase 2 different kinds of personal wallets that are generally more secure than exchange wallets: hardware and software wallets. Both offer you full control over your funds. Hardware wallets are the safest place to store your cryptos. Software wallets are usually free and easy to use but are less secure than their hardware counterparts.
Best Hardware Wallet: Ledger
Ledger has been the hardware wallet industry leader for years, and it doesn't seem like that will change any time soon. It makes 2 sleek and secure hardware wallet models: the Ledger Nano S and Ledger Nano X. The Nano is the simpler device, but it is just as secure as the Nano X.
Both devices have the same certified secure chip that generates, encrypts and safely stores your wallet’s private key. The private key is the only way to access your wallet, and it never leaves the wallet. Both models support more than 1,000 cryptocurrencies such as Bitcoin, Ethereum, Ripple, Dogecoin and all ERC-20 tokens (including Floki Inu).
Best Software Wallet: Coinbase Wallet
Software wallets are important tools cryptos investors use for both day-to-day transactions and even long-term storage. One of the best software wallets is Coinbase Wallet, and it is available on both iOS and Android devices. It beats out most of its competitors with its wide range of features. It has a useful tab where you can swap between cryptos, a buy tab where you can buy cryptos with USD and the vital DeFi browser.
One of the easiest ways to use a DEX like Uniswap is to use Coinbase Wallet’s DeFi browser. You just need to search for Uniswap in the search bar, connect your wallet and complete your transaction. Coinbase Wallet supports more than 1,000 different cryptos including Bitcoin, Ethereum, Ripple, Dogecoin, Floki Inu and all ERC-20 tokens.
Floki Inu’s success will likely hinge on its ability to gain a wider audience. If the project’s marketing strategy using the 4% of all transactions is successful in driving many more buyers, Floki’s price could easily explode.
Current Crypto Prices
The cryptocurrency market is performing well, and many of the top coins including Bitcoin and Ethereum are nearing their all-time highs. A major recent impetus for this success is a rumor circulating that the SEC will allow Grayscale’s Bitcoin ETF to start trading extremely soon. A crypto ETF would be a massive boon for the market because it would mean millions more traditional investors could be exposed to cryptocurrencies. Bitcoin is trading within a few thousand dollars of its all-time high and Ethereum isn’t too far behind.
If the rumor is confirmed and bullish sentiment continues to rule the market, Ethereum may rise above $4,000 and Bitcoin may climb beyond $65,000 soon. No guarantee exists that the market will continue to rise, but the attitude of most investors at the time of writing is positive.
So, Is Floki Inu a Good Investment?
Floki is one of the riskiest investments you could make right now. It could be the best investment of your life or the worst. If it can achieve success anywhere close to Dogecoin or Shiba Inu, you will likely make a large return on your investment. However, it could easily crash to zero and lose the public’s attention. Be careful investing in the token, and remember that every time you buy or sell it, you will lose 8% due to the transaction tax.
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About Henry Stater
Henry is an expert in all things crypto. He stays up to date with all the latest coins, platforms and technologies in the field. He has particular expertise in the burgeoning decentralized finance ecosystem and loves trying out all the new platforms. He also always follows major events in other financial markets and geopolitics as a whole, especially when an event’s effects ripple through the crypto market.