Most people would agree that 2021 has seen the rise of hundreds of memecoins. Tokens like Shiba Inu (SHIB) have risen over 100,000,000% in the past year, allowing at least 1 investor to turn $8,000 into over $5 billion. Many of these memecoins feature dogs and Tesla Inc. (NASDAQ: TSLA) CEO Elon Musk. One of these is Lil Floki (LILFLOKI). Lil Floki is a memecoin based on Elon Musk’s dog, named Floki. Through its charity program, the project is hoping to be more than just a memecoin.
What Is Lil Floki (LILFLOKI)?
Lil Floki is a project based on the Binance Smart Chain (BSC) and aims to be a payment cryptocurrency with a store of value. However, memecoins can hardly be considered a store of value, as these are some of the highest risk investments you can make. The project has several features in place to try and retain value, but its token price is widely determined by hype.
Perhaps the most important way Lil Floki attempts to preserve the value of its token is through anti-whale procedures. This feature makes it so that only 1% of the total supply of LILFLOKI can be sold at a time. It also makes it so that 1 wallet can only hold a maximum of 2% of the total supply. This rule prevents a single user from having too much influence on the price of the token.
Another way the team attempts to preserve the value of the token is through its burning mechanism. A portion of each transaction is sent to a wallet where the tokens are burned, or taken out of circulation. This action decreases the supply after every transaction. However, it only works if there is enough volume to make burns effective, and the team has not yet released the details of the burning feature.
Every transaction incurs a whopping 13% fee. Additionally, 2% is distributed back to holders in the form of Binance Coin (BNB); 4% is put into a liquidity pool to support volume; and 7% is sent to the developers for “charitable purposes.” This means that an investor who buys $1,000 of Lil Floki will actually only receive $870 worth of the token, and if the investor immediately sells, they will receive about $750 –– resulting in a 25% loss if the token holds the same value.
The charities that the project supports are dog-related. In the past, it has bought flea treatments and food for dogs in shelters. This unique feature allows the project to have a direct effect in the community. It can also encourage transactions, as the fees are going towards a good cause. However, the developers have only donated $200, and it’s possible that the developers may pocket some of these funds for themselves.
Brief History of Lil Floki (LILFLOKI)
The project was launched on Sept. 25, 2021, by 2 developers based out of New Zealand named Alice Morgan and Hisham Macpherson. The project was launched surrounding the idea of charity and their shared love for dogs. The developers made sure to be very public to develop trust between them and investors.
Most of the first month of the project was focused on marketing. This period included the creation of social media accounts and influencer endorsements. Moving forward, it is hoping to achieve larger goals, such as getting an audit and developing non-fungible tokens (NFTs).
Though the project has been out for just over a month, the price has already surged over 500%. It is just starting to receive recognition. However, the market cap is under $10 million, so it is still a very risky investment.
- Open an online account.
Now that you understand the basics of LILFLOKI, you may be interested in buying the token. Because it is a BSC token, you first have to open an account on Binance. To open a Binance account, navigate to its website and create an account using an email and password. You then enter personal information before you can fund your account.
Once your account is open and verified, you can fund it using an ACH or credit transfer. Then you can find and purchase Binance Coin (BNB). However, you need a wallet to store BNB and swap it with LILFLOKI.
- Download Trust Wallet or Metamask.
A cryptocurrency wallet is a place to store crypto separate from an exchange. It allows the investor to be the sole owner of the cryptocurrencies. The best wallets for BSC tokens are Trust Wallet and MetaMask.
To open a wallet on either program, you download the software and create an account. You will then be assigned a wallet address where you send your BNB. Remember, your wallet address will be set to Ethereum’s network by default. You’ll need to add BSC before sending your BNB over to your wallet.
- Convert your BNB tokens.
On the wallet, make sure to add BSC tokens and send your BNB from Binance to the wallet. Once the BNB is in your wallet, you are ready to purchase LILFLOKI on PancakeSwap.
- Make your purchase.
Navigate to PancakeSwap and connect your wallet in the upper right hand corner. Then find the LILFLOKI and BNB pair. The exact address for the token can be found on the project’s website. Once you have the pair, select the amount of LILFLOKI you would like to purchase and execute the trade.
You may have to increase your slippage to 13% or more to account for the hefty transaction fees that Lil Floki has embedded into the token. Your LILFLOKI will then be stored in your wallet.
Keep an eye out for the release of the project’s burning feature, which could give each token more value and may increase the price.
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Is Lil Floki (LILFLOKI) a Good Investment?
As of right now, LILFLOKI is a completely speculative investment. It does not offer any real features, and price increases may not be justified. However, its focus on charity may attract more investors. It is also working on new projects that may have an impact on the price. If it can follow through with these projects, Lil Floki may have a future.
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About Caden Pok
Caden has been involved with cryptocurrency for several years. He began trading and investing in crypto in 2018. Now, we mines multiple coins and holds positions in Cardano and Ethereum. He is very experienced with DeFi technology.