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The Floki Inu Marketing Blitz May Be Too Little, Too Late

Recently, I argued that Floki Inu (CCC:FLOKI-USD), the latest “pupcoin” to pop on the radars of crypto investors, still had a shot of skyrocketing in price. Mainly, because of its relatively lower valuation, it had more room to make another to the moon move.

An image of a corgi wearing a horned viking helmet above text saying Floki Inu on a black background.

Source: Zie Project/ShutterStock.com

In contrast, Dogecoin (CCC:DOGE-USD) and Shiba Inu (CCC:SHIB-USD), the 10th and 11th most valuable cryptos, respectively (per data from CoinMarketCap), didn’t have that potential. Along with this, an upcoming catalyst (Floki’s marketing blitz) was in place to make these potential gains become real gains.

But in giving the situation another look, it’s easy to come to a more bearish conclusion. Instead of its marketing campaign giving it another triple-digit percentage jolt, this may be a “too little, too late” situation. By the time this campaign is in full swing in December, the pupcoin bubble may fully over.

On paper, it may sound like a sure-fire way to increase investor enthusiasm and send FLOKI-USD toward a valuation in line with DOGE and SHIB. But if its campaign kicks off and nobody cares, brace for impact.

The Latest With the Pupcoin Phenomenon

In recent days, cryptos overall have seen some downward pressure. You can chalk this up either to a stronger U.S. dollar, or more news of China’s crypto crackdown.

For the pupcoins, this is on top of the pressure resulting from this crypto trading trend seemingly reaching its peak. Shiba Inu is down 44% from its all-time high (hit on Oct. 28). Dogecoin, while it didn’t benefit much from this trend, is down around 27% during the same time.

As for Floki Inu? Due to the declining popularity of this trend, it’s down 45% from its respective all-time high (hit on Nov. 5). Given this trend is dipping in popularity, it’s doubtful a rebound is just around the corner.

This is even as Floki Inu’s marketing blitz kicked off, with the largest portion of it starting next month. Again, this global ad campaign isn’t a sure-fire way to drive it higher. I wouldn’t bet the ranch the masses will fill their virtual stockings with this token this holiday season.

Big Trouble If the Ad Campaign Flops

The Floki Inu marketing campaign is already underway in Europe. Across the continent, this crypto’s developers bought ad space on billboards and at transit stations. These ads tout the appeal of buying it, mainly targeting retail investors who may have missed out on prior pupcoins.

Interestingly, like I suggested in my last article on the token, I’m not the only one who sees something a bit “pump and dump” about this blitz. Regulators in the U.K. have similar concerns as well. Britain’s Advertising Standards Authority opened a formal inquiry on the promotion. This could foreshadow similar regulatory scrutiny stateside, when Floki’s major U.S. TV push begins in December.

This, however, is not the main concern you should have about this worldwide promotion. Instead, you should worry that despite the push, the public fails to heed the call to action and skips out on buying FLOKI-USD. Like any marketing campaign, there’s far from a guarantee that will have the intended impact. Especially if, assuming pupcoins fall further, headlines about dog-themed crypto could convince most to tune them out.

Putting it simply, there’s a risk of accelerated losses. If this push fails, many buying it now ahead of it could quickly unload their positions. Trading for around 0.002 cents today, it could fall completely back to an even greater fraction of a penny. For instance, the .0002 cents it traded for as recently as September, or around a 90% drop from today’s prices.

Approach Floki Inu With Caution

Based on its latest price action, this “new pup on the block” is moving in the same direction of its larger, more established (for lack of a better word) peers. There may be some chance that the forthcoming U.S. ad campaign sparks renewed interest in this dog-themed cryptocurrency. Yet giving things a second look, it’s easy to see it fall flat on arrival.

In short, I wouldn’t consider Floki Inu to be a better buy than Dogecoin or Shiba Inu. Instead, you should approach it the same way. If you’re looking for a crypto gamble, there’s no harm in making a bet.

Just keep it small.

On the date of publication, Thomas Niel 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.

Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.


Article printed from InvestorPlace Media, https://investorplace.com/2021/11/floki-inu-marketing-blitz-may-be-too-little-too-late/.

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