Since last writing about it about a month ago, pupcoin also-ran Floki Inu (CCC:FLOKI-USD) continues to tumble.
Since mid-November, Floki Inu is down another 38%. In total, the once-hot crypto is dropped more than 53% from its all-time high (set on Nov. 4).
This massive move lower isn’t much of a surprise. The dog-based crypto trend has been eclipsed by the rise of metaverse themed coins. Floki, along with Dogecoin (CCC:DOGE-USD) and Shiba Inu (CCC:SHIB-USD), are yesterday’s news. Metacoins like Decentraland (CCC:MANA-USD), The Sandbox (CCC:SAND-USD) and Enjin Coin (CCC:ENJ-USD), while pulling back as well, seem more promising as moonshot cryptocurrencies right now.
That said, it’s not as if this pupcoin is sleeping on this latest trend. As InvestorPlace’s Brenden Rearick reported, Floki could join the metacoin ranks as soon as February. This has helped the token bounce back in recent days.
So, as it latches onto the latest hot trend, could Floki Inu be setting the stage to have its breakout moment? Not so fast. It makes sense why it’s chasing this trend. From the start, Floki Inu’s developers have been quite upfront about ginning up speculative fervor for their coin. Unfortunately, much like its marketing blitz has been a case of “too little, too late,” that may the case too with its latest meta moves.
Questionable Exposure to the Metaverse Trend
Floki Inu is becoming a metaverse play thanks to news of its planned launch of its own gaming metaverse. With its Valhalla game, users can earn non-fungible tokens (NFTs) based on gameplay. Some may see this as an incentive that will result in rapid adoption of the game, and in turn, bring more users into the overall Floki ecosystem.
However, looking beyond just the headlines, it’s hard to see how this launch will result in higher Floki Inu prices. Granted, the developers of this token aren’t looking to supplant Decentraland or The Sandbox with their upcoming meta endeavor. At least, I would assume so.
The platforms behind the three above-mentioned metacoins are well established. All three clearly have first-mover advantage. This token’s developers, on the other hand, are hastily diving into the space.
Still, I’m doubtful their likely true intent (use this game to gin up interest) will pan out. Much like how their global marketing blitz so far has failed to deliver.
Recent Moves Are Failing to Spark a Rebound
Admittedly, Valhalla isn’t the only catalyst at play for Floki Inu. Besides this metaverse game, there’s also its moves into the world of decentralized finance (DeFi). Partnering with Chainlink (CCC:LINK-USD), it may be able to build its own version of ShibaSwap, its pupcoin forebear’s DeFi platform.
Sure, even if its DeFi endeavors fail to renew excitement, there’s of course its still in-progress marketing blitz that could gin up more attention, and in turn, higher prices. Yet so far, this has failed to pan out, based on how FLOKI-USD prices have tumbled while the campaign has been in full swing over in Europe.
In fact, instead of attracting positive attention, all it seems to have gotten from its efforts is regulatory heat. Its campaign in the U.K. has sparked an inquiry from that country’s Advertising Standards Authority. In the U.S., there was talk a few months back about plans to get extensive coverage of Floki on major U.S. cable television networks.
However that seems to have faded away even though the campaign was to kick off this month. Perhaps more will come out about it (either from Floki itself, or from third-party reports) in the next two weeks. Nevertheless, with the main trend behind its run-up now over, it’s unclear whether these aggressive efforts to keep itself in the public eye will have much impact on its token price.
Bottom Line on Floki Inu
Put simply, Floki’s ad campaign has not really panned out as a catalyst. Spending heavily on ads, its developers may have thought it would be smooth sailing to higher prices. Yet as seen from the backlash, including the backlash over boxer Tyson Fury’s low-energy endorsement of the token, speculators have wisely seen right through its cynical efforts.
Frankly, I see the same thing happening with its metaverse endeavor. There will be some hype about it, but by the time it’s released, it’ll likely receive little fanfare, doing little to move the needle for FLOKI-USD prices.
I’m on the fence about the metaverse, yet one thing’s for certain. If you’re looking for plays related to this trend, skip out on Floki Inu. Stick to the pure-play memecoins instead.
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.