As I write this, Dogecoin is in the ninth spot according to Coinmarketcap.com with a market cap of $36.2 billion, SHIB is 11th at $29.9 billion, and FLOKI, with a market cap of $2.4 billion, is around 79th place.
However, the fact it’s up 5,214% year-to-date suggests anything is possible with this small but powerful cryptocurrency.
What caught my interest about my colleague’s comments from Oct. 28 was the focus on utility.
Here’s what I wrote a couple of days earlier:
“When it comes to cryptocurrency, the only thing that matters to me is utility. If a crypto doesn’t have it, I’m not interested. It’s why I haven’t jumped on Bitcoin. It’s a modern version of gold. Only it’s not nearly as tangible an asset,” I wrote on Oct. 26.
So, before considering Floki-Inu, I would consider its utility beyond being a cryptocurrency. What can it do to make the world a better place?
Does Floki-Inu Make the World a Better Place?
As my colleague stated, Floki Inu has three core projects they’re working on.
There’s Valhalla, which looks to take NFTs (non-fungible tokens) and gaming to the next level. FlokiPlaces will be a digital marketplace for NFTs with FLOKI as the main currency.
It ought to be ready by the end of the year. Lastly, it’s creating Floki Inuversity, a crypto education platform that’s intended to become the largest database of crypto content, all available using Floki tokens.
Of the three, the last one appears to provide the most utility for the average investor because it will educate people, but it’s hardly a game-changer. There are plenty of good sources of cryptocurrency material at the moment — most of it is free.
No, what I’m talking about are products and services that challenge the status quo.
I recently discussed Cardano (CCC:ADA-USD) and the work Input Output Hong Kong (IOHK) — the group behind the blockchain network — is doing in Ethiopia.
Specifically, the Atala Prism project is intended to create a digital identity system that will keep track of the attendance and grades of five million Ethiopian students.
“If you can’t measure it, you can’t improve it.”
The Atala Prism homepage discusses what the Atala Prism vision is for corporations, governments and government agencies, and individuals.
“Instantly access a variety of services. No more forms, passwords, or wasted time,” states the final sentence of the project’s vision for empowered individuals.”
Under the frequently asked questions section, it goes to great lengths to explain how individuals under a decentralized identity solution are the sole owners of their personal information.
Unlike many websites that sell your data to third parties, Atala Prism keeps individuals in control of their personal information.
What’s not to like about that?
I don’t want to rain on the Floki Inu parade, but its utility doesn’t come close to Cardano’s, in my opinion.
That Doesn’t Mean You Shouldn’t Buy FLOKI-USD
Just because I don’t believe Floki Inu delivers enough utility to make it a worthwhile investment doesn’t mean you can’t make money on the cryptocurrency. On the contrary.
I’ve argued in the past that if you buy lottery tickets, it’s probably a smarter speculative bet to purchase $20 worth of Floki-Inu every week than the equivalent amount of lottery tickets.
That’s because the payoff could be considerably higher than the free tickets most people win each week playing lotteries. Of course, you can always take some of your speculative gains and donate them to the causes aided by lottery revenues.
In the end, my InvestorPlace colleague Josh Enomoto’s words ring true:
“If you want to make big boy profits just from Bitcoin, you must put down big boy dollars. On the other hand, you only need to put small boy dollars into Floki Inu to possibly — again, emphasis on possibly — see big boy returns.”
And so, Enomoto’s Law may finally get me into the cryptocurrency game. Not because I think it’s the best, but because it’s one of the cheapest, with upside potential to make big boy profits.
InvestorPlace does not regularly publish commentary about cryptocurrencies that have a market capitalization less than $100 million or trade with volume less than $100,000 each day. That’s because these “penny cryptos” are frequently the playground for scam artists and market manipulators. When we do publish commentary on a low-volume crypto that may be affected by our commentary, we ask that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: How to Avoid Popular Cryptocurrency Scams
On the date of publication, Will Ashworth 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.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.