Decided FLOKI is safe enough for your risk tolerance? To buy Floki, you'll 1st need Ethereum, which you can buy on eToro. Then, you can swap ETH for FLOKI on Uniswap.
Floki Inu is a memecoin heavily influenced by Shiba Inu (SHIB) and Dogecoin (DOGE). It was created in June 2021 after an Elon Musk tweet that announced the name of his Shiba Inu dog would be named “Floki”. Since then, it has gained massive amounts of popularity and seen huge surges in price.
Floki Inu entices investors with a low cost per coin and a strong presence on Twitter. But is Floki Inu safe? Learn more about Floki Inu now.
How is Floki Inu Secured?
Floki Inu is an BEP-20 token, meaning it is based on the Binanace Smart Chain. The Binance Smart Chain employs a proof of stake consensus model, which uses 21 validators to process transactions. Floki Inu uses the benefits from the BSC while having its own unique features. It has a supply on both the Ethereum blockchain and BSC.
Floki Inu uses wallets to allow users to safely store their crypto. These wallets can only be accessed by private keys. Private keys can be stored safely by the owner of the wallet to help secure the asset.
Floki Inu has a unique tokenomics system. Overall, transactions have an overall fee of 8%. It burns part of this fee, and 4% is paid to the team’s wallet. A portion of these fees are granted to those who are already holding the token. Those with the largest stake often receive the most rewards.
Risks
There are several risks to investing in Floki Inu. Perhaps the largest risk is volatility. While the token is up nearly 100,000% since August 2021, it has seen dips of over 50% in a single day. Due to this volatility, you risk losing the majority of your investment within a short time frame.
Another danger of Floki Inu is liquidity. The average volume is around $100 million, which is much lower than a majority of other large cryptocurrencies. For perspective, Bitcoin boasts an average volume of over $45 billion. In the event of a massive selloff, a low liquidity may make it hard to sell your holdings.
Floki Inu can also be lost when it is sent. BEP-20 tokens use the “transfer” function to send crypto to other wallets. It is estimated that over $3 million has been lost to this issue. Ethereum developers are in the process of creating an ERC-223 token to combat this. Make sure to only send FLOKI to the correct cryptocurrency address or you risk losing your funds entirely.
Is it Safe?
The Floki Inu team remains anonymous, but often shares relevant information on both their website and Twitter. However, a lack of identity raises questions of what will happen in the event something goes awry. There will be no one to hold accountable and there is a possibility of funds being stolen.
The project allows for transaction fees to be automatically distributed to holders of the coin. If this system is changed and there is less of an incentive to hold the token, there may be a selloff and subsequent price drop. The project also gains funding from this, so a change could result in a lack of funding for the project.
Two rogue Floki Inu developers stole transaction fees and manipulated the token supply. They were subsequently fired from their positions, but it brought up many questions regarding the legitimacy of the project.
Where To Buy
Floki Inu is an extremely new token and is still somewhat small. Because of this, it is not listed on any major crypto brokerages. However, if its popularity continues to increase, it may be offered in the future. As of right now, you can obtain FLOKI on Uniswap and Gate.io.
For U.S-based investors, Uniswap is the best way to buy Floki Inu. To use Uniswap, you’ll need to send Ether to an Ethereum wallet and then swap your ETH for FLOKI on Uniswap’s website. If you don’t already own Ethereum, you can quickly purchase some tokens on eToro, Coinbase, or Gemini.
If you want a more in depth guide on how to purchase Floki Inu, make sure to check out Benzinga’s article on how to buy Floki Inu.
Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more
Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts.
Hacks Impacting This Token
Floki Inu has not been subject to any external hacks, but other tokens such as KuCoin and Chainlink have been hacked and lost millions in the past. The rogue developers of Floki Inu did, however, create an internal hack in which they redirected fees into their wallets and ran off with over $700,000. Because of this, you may be looking for the safest place to store your crypto in the event of a hack.
Best Hardware Wallet
Hardware wallets are often considered to be the safest way to store crypto. The wallets cannot be accessed unless the physical device is present.
- ERC-20 tokens
Best Hardware Wallet: Ledger
Ledger is a hardware wallet that supports ERC-20 and BEP-20 tokens through Ledger Live. You can store your Floki Inu on the wallet and it is very safe. Ledger offers Nano X and Nano S models. The Nano S is cheaper and more intended for beginner investors. The Nano X is designed for more advanced users and offers powerful features, supporting up to 100 apps at the same time.
Ledger also supports the sending and receiving of ETH and USDT, which may be useful for the purchasing of FLOKI.
Bonus Section:
Keep an eye on Floki Inu’s social media presence. It has largely influenced the price and may continue to be a driving force.
Cryptocurrency Market Outlook
Memecoins had a historic October 2021. Coins such as Shiba Inu have seen all-time highs. One investor was able to turn $8,000 of SHIB into nearly $6 billion, although it’s not clear if the investor still has access to their wallet. These are unprecedented price increases and many are hoping to find the next big memecoin.
Other coins, such as Bitcoin, also saw all time highs in October 2021. There was an overall bullish sentiment in October 2021, and some believe this will continue into the end of the year.
Is FLOKI a Safe Investment?
As of right now, Floki Inu is a mostly speculative, high-risk investment. Its prices have not been driven by use cases, but rather social media hype. There is also the potential for problems surrounding the token’s reflection fees, as it incentivizes investing in the token, even if the project doesn’t create any real value. If this changes, investors may sell.
However, Floki Inu can be stored safely, and its network is fairly secure. As with any new investment, weigh the benefits and drawbacks before you proceed, and never invest more than you can afford to lose.
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About Caden Pok
Caden has been involved with crypto since 2018, when he began investing, trading, and mining tokens. He took part in undergraduate research studying cryptoeconomics at the University of Michigan, where he will graduate Phi Beta Kappa with a bachelor’s in economics in 2025. He is experienced with DeFi technology and multiple blockchains, currently investing in Ethereum and Bitcoin.