Has the popularity of dog-themed cryptos peaked? Or is it just in its early stages? If you’re buying Floki Inu (CCC:FLOKI-USD), the altcoin inspired by Shiba Inu (CCC:SHIB-USD), you’re making a bet that the latter scenario is the case.
A few months back, it was easy to dismiss either coin. Both are inspired by Dogecoin (CCC:DOGE-USD), the crypto that started as a joke but has since led to the subsequent pup coin trend.
But after their incredible runs in recent months, traders who bought into the joke have laughed all the way to the bank. Both SHIB and FLOKI, which trade for fractions of a penny, have made high triple-digit percentage moves in a short amount of time. If either one makes it to a penny, the returns from buying them today will be astronomically high.
So, is it worth it to roll the dice? It depends. The situation here with FLOKI is the same as the situation with SHIB: predicting its next move is pure luck. It’s no different than trying to pick the next number on a roulette wheel. Nevertheless, if you believe Floki Inu has more runway and you are only investing money you can afford to lose, there’s no harm in buying it.
Elon Musk’s Tweet and What’s Next for Pup Coins
As InvestorPlace’s Samuel O’Brient reported Oct. 25, Tesla (NASDAQ:TSLA) CEO Elon Musk’s tweets have driven some of the action in pup coins. Musk, who earned the “Dogefather” moniker due to his involvement with Dogecoin earlier this year, was asked by fans whether he owned either of these pup coins.
Adding to this, the entrepreneur argued the importance of “building products [and] providing services to your fellow human beings.” He stated that investors should not “bet the farm on crypto.”
Musk’s tweet, seemingly negative when it comes to dabbling in speculative cryptos, has so far not had a big effect on Shiba Inu and Floki Inu. SHIB pulled back some on the day of the tweet, but has bounced back near its high.
Comparatively, FLOKI briefly spiked around the time of the tweet, but quickly fell afterward. It’s been trending up in recent days, yet remains down around 24% from the high it hit on Oct. 13 of .008106 cents.
In short, I don’t believe Musk’s remarks on either coin are — or will be — as damaging as his “it’s a hustle” comment about Dogecoin on Saturday Night Live. However, there are factors indicating that while the pup coin rally could carry on, the popularity of Floki Inu (which, by the way, was named after Elon’s Musk’s own Shiba Inu dog) may have a shorter shelf life.
Floki Inu Could Run Out of Steam Before Shiba Inu
Recently, I argued that Floki Inu had a shot at grabbing the spotlight from Shiba Inu. However, so far this hasn’t played out. Instead, most attention remains on SHIB.
Shiba Inu has been able to move beyond its “Dogecoin knockoff” status. FLOKI, however, still has work to do before shaking off its reputation as a SHIB knockoff. If it fails to do this, after its epic run from late August to mid-October, it could end up giving back the lion’s share (dog’s share?) of its recent gains.
But while its popularity has peaked based on charts and recent polls, this crypto’s developers may be able to bolster its reputation. Along with the continued rally in dog-based cryptos, this may enable Floki Inu to zoom to higher prices.
So, what do Floki Inu’s developers have up their sleeve? On Oct. 18, they announced plans to kick off a massive marketing campaign on major U.S. cable television networks in December.
It’s too early to say if the strategy will work or not. But if this awareness campaign plays out as expected and makes this pup coin a household name, FLOKI could make up its recent losses and start hitting new highs again.
Take Heed of Elon Musk’s Advice With Floki Inu
Its forthcoming marketing blitz may be key to the continuation of its run-up in price. Yet keep in mind this will only happen if the overall pup coin trend carries on. If traders grow tired of even Shiba Inu by December, the efforts of Floki’s developers could be fruitless.
With its high risk and potentially high returns in mind, what’s the best move with Floki Inu? If you believe this latest crypto trend will carry on, go ahead and buy some. Just keep in mind Musk’s advice on crypto: don’t bet the farm.
On the date of publication, Thomas Niel held long positions in Bitcoin and Ethereum. He did not have (either directly or indirectly) any positions in any other securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.