Fall wherever you may in the debate over Floki Inu (CCC:FLOKI-USD), but one thing remains crystal clear. Should Coinbase (NASDAQ:COIN) ultimately list the dog-inspired token on its platform, it will surely rise.
Fans of the coin, who collectively refer to themselves as Floki vikings, are petitioning to make that happen. There’s an up-to-date count of that petition. There is also a similar petition to take Floki Inu onto the Robinhood (NASDAQ:HOOD) platform that has far fewer signatures.
Let’s start by understanding why the so called “Floki vikings” are so interested in getting it listed on these platforms.
Tough to Trade
Part of the reason fans are so eager to get it listed on larger exchanges is the fact that it isn’t easy to trade it currently.
Those interested in trading the token have scrambled to understand how to do so. A recent article from my colleague Samuel O’Brient notes that the Floki Inu “website features links to purchase Floki on three popular exchanges: Uniswap, PancakeSwap and the more recently added Gate.io. As Benzinga reported, Gate.io provides the easiest and quickest experience for new investors.”
The Floki Inu site also includes videos that provide information on buying the token as well. However, that only leaves a handful of smaller exchanges through which to purchase Floki Inu.
So, the petitions to list the token on both Coinbase and Robinhood are partially in response to the relative lack of ease in trading it. The other is that it will make prices rise.
Demand and Liquidity
If either or both Coinbase and Robinhood list FLOKI-USD it will become much more liquid. The ease of trading on more established and larger platforms is evident. That’ll make it much less risky to hold because in a downturn it will be easier to liquidate.
Conversely, those platforms make it much easier to take profits off the table when Floki Inu appreciates in price. That’s a fairly obvious argument in favor of listing the token on those respective platforms.
Likewise, a listing on those platforms is a positive signal to the markets about the inherent value of Floki Inu. But frankly, it doesn’t seem likely to happen.
I say that in light of what recently occurred with the Shiba Inu (CCC:SHIB-USD) petition to become listed on Robinhood.
A Polite Rejection
In short, Robinhood politely said “Thanks, but no thanks” when users petitioned to get Shiba Inu listed on the platform.
COO Christine Brown essentially stated that the risk-reward trade off simply isn’t worth it for her company.
We think that the short-term gain to us is not worth the long-term trade-off for our users. We want to make sure that we are working and assessing everything from a regulatory perspective.
If Shiba Inu couldn’t pull it off with its notoriety and far more signatures, then what chance does Floki Inu have? I’d say very little at all.
Robinhood and Coinbase are facing increasing regulatory scrutiny as cryptocurrency displaces more traditional assets. Management has little incentive to champion projects like FLOKI-USD and Shiba Inu which have no real utility.
It simply reflects poorly on them as organizations and platforms.
But I also think the rejection should send a signal to retail traders and crypto enthusiasts championing weak projects like Floki Inu. The signal is that you can’t simply will Floki Inu or Shiba Inu into relevance.
Platforms will be happy to extend invitations to Floki Inu when it provides utility. It doesn’t, and despite the coordinated efforts of “Floki vikings” to will it onto larger platforms that isn’t how the world works.
What to Do With Floki Inu
Simply put, avoid Floki Inu until it provides utility. That means use cases, and not exchange listings.
On the date of publication, Alex Sirois 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.