The crypto world can be a confusing place. This statement isn’t limited to the fact that there’s a lot of technical jargon, steps to take and projects to choose from. It can also be confusing in the sense that cryptos can often seem indistinguishable from one another. Bitcoin (CCC:BTC-USD), Bitcoin Gold (CCC:BTG-USD) and Bitcoin Cash (CCC:BCH-USD) are all completely different cryptocurrencies, for example. Another crypto theme that confuses many investors is that of the Shiba Inu-themed altcoin class that spawned from Dogecoin (CCC:DOGE-USD). Now, with both Shiba Inu (CCC:SHIB-USD) and Floki Inu (CCC:FLOKI-USD) becoming two of the hottest altcoin plays available right now, investors want to know the difference. So, what sets apart the Floki Inu crypto from its progenitor?
It’s important to note that these cryptos are both cut from the same cloth. When Dogecoin rose meteorically into the spotlight of the altcoin class, it inadvertently led to a whole host of Inu-themed coins that promised slightly differing token economics. Shiba Inu is by far the most popular of that wave of cryptocurrencies, existing longer than any other and making a name for itself as “the Dogecoin killer.” It does not aim to be a pale imitation; it wants to be the last altcoin standing.
The Floki Inu crypto is a much younger token, and it is in fact born of Shiba Inu fans who wanted to make a crypto with the same fun attitude and more utility.
Floki Inu Crypto vs. Shiba Inu: Similar Cryptos, But Different
Both the Floki Inu crypto and Shiba Inu are community-based tokens, with large fanbases who regularly get their crypto trending on Twitter. They both bear Shiba Inu logos, albeit Floki’s bears a distinguishing viking helmet. They even both play heavily off of Elon Musk’s love for Dogecoin; SHIB spent the summer getting price pumps from Musk’s tweets about Shiba Inu, and Floki’s name comes from Musk’s newly adopted Shiba.
However, the similarities begin trailing off there. First, FLOKI is a token, while SHIB is a coin. This might seem pedantic, but it really does make a difference. SHIB is the native cryptocurrency of its underlying protocol, the Shiba Inu network. It supports a host of tokens on its protocol. Meanwhile, Floki is a token, which means it does not have an underlying protocol. Of course, this isn’t a negative — developers don’t always need to have an entire network to themselves — but it is a difference nonetheless. SHIB operates on its own dedicated chain; meanwhile, users can use FLOKI on either the Ethereum (CCC:ETH-USD) or Binance (CCC:BNB-USD) chains, thanks to its multi-chain operability.
Supply Differences, ‘Tokenomics’ Set SHIB and FLOKI Apart
Another major difference between FLOKI and SHIB is in token supply. Floki has a total of 10 trillion tokens in existence; this is a lot, but it stands in stark contrast to SHIB’s massive 1 quadrillion coin supply. This lower supply has an effect on the price of FLOKI tokens as well; with fewer tokens to get ones hands on, supply and demand economics have leveraged the value of FLOKI above SHIB already.
Where SHIB’s price currently stands at $0.000025, Floki’s stands at $0.000067. It’s worth noting that while SHIB’s huge supply might seem like a hamper, that supply is actually beginning to dwindle. Vitalik Buterin, the Ethereum co-founder who was gifted half of SHIB’s supply upon launch, burned most of the 500 trillion SHIB in his possession.
Developers also are planning on instituting a coin-burn function in order to slowly and permanently reduce the entire supply. However, it will need to burn many coins — and fast — if it is to catch up to Floki, which already has a token burn mechanism.
This also shows the difference in how users can earn passive income with each crypto. Floki, with its transaction fees, allows users to passively generate income just by holding FLOKI. When a transaction takes place, a fee incurs; part of this FLOKI fee is sent to the burn wallet and removed from circulation, while another part is redistributed to all holders of FLOKI.
SHIB doesn’t offer the same tokenomics, but thanks to its robust ecosystem, there are plenty of opportunities to stake SHIB for income. Users get rewards for staking coins, which provides liquidity to the network’s ShibaSwap exchange. This fuels the platform and allows users to stake more SHIB for more rewards.
Floki Inu Crypto vs. Shiba Inu Crypto: Utilities and Road Maps
The cryptos are demonstrably different in structure and tokenomics. However, they also share differing plans for the future. SHIB is already deep into its roadmap; it has instituted a number of new tokens into its ecosystem, like the Dogecoin Killer (CCC:LEASH-USD) token and the Bone (CCC:BONE-USD) governance token. It has also already launched its ShibaSwap exchange, one of its longest-awaited upgrades.
While earlier along in its roadmap, the Floki Inu crypto isn’t looking to fill the same shoes. Rather, Floki’s roadmap emphasizes non-fungible tokens (NFTs) and crypto education as its pursuits of choice. Floki developers are planning to pursue a metaverse called Valhalla, a viking-themed NFT gaming universe. It also hopes to launch its own exchange, albeit one centered around NFTs. Its Floki University project rounds out the roadmap, representing a platform, where users can learn more about cryptocurrencies.
Altcoin investors, upon learning the differences between these projects, might consider deciding a preference. One might want to join either the Shiba Inu or Floki Inu crypto communities; in fact, one might want to join both in order to support the two robust and differing projects. Now that the differences are laid out, there’s much less worry in confusing the two or feeling overwhelmed by these projects, which are both seeing a huge amount of spotlight.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.