Floki Inu (CCC:FLOKI-USD) is the latest dog-themed altcoin to cause a buzz among crypto investors. On the heels of Dogecoin (CCC:DOGE-USD) and Shiba Inu (CCC:SHIB-USD) it’s easy to understand the excitement for another “pup coin.”
The cryptocurrency market is valued at over $3 trillion dollars. And a significant part of that value comes from altcoins. As Thomas Niel wrote, this is a coin that could give Floki Vikings (which is their community’s name) a high return if they were late to the party on SHIB.
However, for the time being, FLOKI remains a relatively obscure altcoin. But that is rapidly changing. Currently, the price of FLOKI is $0.0001619. But as recently as August, the price of the coin was $0.00000002. What a difference a few zeroes make, right?
What Is the Use Case?
This is the first question that I ask myself when considering any cryptocurrency investment. What kind of utility does it have. In the case of FLOKI, they are targeting the non-fungible token (NFT) space hard. Per the company’s white paper, two of their three flagship projects focus on NFTs. The first is Valhalla, an NFT and merchandise marketplace. Another project is FlokiPlaces which will be an NFT and merchandise marketplace. The company also writes that it will have a content/education platform known as Floki Inuversity.
Floki Inu also has a partnership with CryptoCart that will allow FLOKI to be used to purchase items at over 1,700 stores. And the company is working on a similar partnership with Curate that will allow Floki Inu to be used as payment on that company’s marketplace.
However, the company isn’t solely relying on word-of-mouth to get their coin seeded. A planned marketing blitz is already under way. The intention is to put Floki Inu on the radar of the broader crypto community.
A Potential Risk
However, that marketing blitz may not go over as smoothly as investors believe. There is already a campaign underway in London. But the transport authority is taking steps to crack down on cryptocurrency ads based on the Floki Inu campaign.
This appears to be a speed bump more than a roadblock. I used to work in advertising. The concerns of the transit authority are fair. And its likely that bad timing has a little to do with this. The pump-and-dump scheme with the Squid Game token is fresh on the minds of regulators.
However, there’s no evidence that Floki Inu has engaged in any form of fraudulent behavior. And the advertisement does contain the language, “this is completely unregulated, you may lose all your money.”
In my opinion, there will be a more rigorous approval process and probably even stronger language that outlines the risk involved with investing in cryptocurrency. However, owners of Floki Inu should pay close attention to this as the campaign rolls out in other countries including the United States.
Is Floki Inu Worth the Risk?
Any concerns that come with that regulation would be more than offset if the Vikings are successful in getting FLOKI listed on Coinbase (NASDAQ:COIN) and/or Robinhood (NASDAQ:HOOD). It’s pointing out the obvious to say this could be a major catalyst for Floki Inu. But will it happen? In the case of Robinhood, the answer is almost certainly no. The trading platform shot down Shiba Inu’s request. It seems unlikely that it would change its stance for FLOKI.
The appeal of FLOKI is easy to understand. The Dogecoin rally appears to be over, for now. Some crypto investors wonder if they missed out on the growth of Shiba Inu. Floki Inu fills that “what’s next” space. And the coin’s appeal will expand if it can gain liquidity.
Is that a reason you should add it to your crypto portfolio? I wouldn’t recommend a large position. But if you have a little speculative money to put at risk, it can’t hurt. And just to stay in the good graces of the regulators, remember, you could lose all your money.
On the date of publication, Chris Markoch 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.
Chris Markoch is a freelance financial copywriter who has been covering the market for seven years. He has been writing for InvestorPlace since 2019.