On the surface, it’s extraordinarily difficult to take Floki Inu (CCC:FLOKI-USD) seriously.
Just in case you do take Floki Inu seriously, there should be a disclosure waiting at the bottom of this article reminding you about how stupidly dangerous this idea is.
More importantly, since my fellow InvestorPlace colleagues and I consistently warned about the dangers of cryptocurrencies and their speculative nature, you are on your own if you choose to ignore good ol’ common sense.
Certainly, the free (decentralized) market has been providing its own set of warnings. Floki Inu tokens have shed more than 35% over the past month.
Yes, you can make a ton of money, as our own David Moadel mentioned. News, no news or perhaps even fake news can get the so-called Floki Inu Viking Army in a feeding frenzy.
On the other hand, discreet flatulence in a noisy hallway is not so discreet in the crypto sector. There’s always somebody listening in, ready to spark rumors that can send speculative cryptos in all sorts of directions.
What’s worse is the comparative performance. To no one’s surprise, many analysts stack up Floki Inu with Shiba Inu (CCC:SHIB-USD), the other crypto token seemingly buoyed by an irrational supporter base.
However, SHIB appears to be on its way to mooning — to use blockchain parlance — after digital-asset exchange Kraken announced that it will list SHIB on its platform.
To my knowledge, FLOKI has yet to enjoy such mainstream support.
The Value of Floki Inu Is the People
In real estate, the common adage is “location, location, location.” For early blockchain projects, the parallel encouragement was “decentralize, decentralize, decentralize.”
Regarding Floki Inu specifically, though, the mantra would probably be “people, people, people.”
Now, please bear in mind that I do not speak for the Floki Inu community in the slightest. For all I know, its mantra could be “ruff, ruff, ruff.” Believe me, I’ve heard stranger things in this sector.
Anyways, when arguably most lay observers first come across FLOKI, their instinct is exactly what Jordan Belfort declared in the film, The Wolf of Wall Street. “Si-six cents a share? Come on. Who buys this [junk]?” Except that with Floki Inu, the nominal headliner is even worse. As I write this, the price per token is 0.0167 cents.
Immediately, this is the signal to run — and on a pure probabilities basis, that’s likely the smart move. Presently, the number of available cryptos is on the cusp of breaking into the 15,000-unit territory. We’re just 10 shy at the moment.
But statistically, this math wouldn’t work because it doesn’t take into account the broader context. With 15,000 competitors around, there’s a very good chance that undergirding the Floki Inu blockchain is nothing truly special. I mean, whatever the FLOKI protocol can do, several thousand other competitors can do just as well, if not better.
But what distinguishes this canine-inspired meme is the community. This is where so many harsh critics — which included me several months ago — get tripped up about it.
It’s not helpful to rationalize these speculative coins and tokens because you’ll probably not find anything of substance. Instead, it’s that people believe that there’s substance — that’s what drives FLOKI and similarly popular digital assets.
A Tough Way to Trade
On one hand, the community-driven aspect of Floki Inu bodes well for those that can properly interpret the psychology of the masses. It’s also a simpler process. You can forget about analyzing cash flow statements and earnings projections — just follow social media and trade away.
On the other hand, this is a tough way to make a buck, primarily because it’s so hard to read the masses. For instance, Bloomberg published an article noting that meme-stock traders began diving into publicly-traded private prisons.
If the original ethos of memes was to strip elitists of their power, profiteering off incarcerated individuals — no matter how they got there — is an unexpectedly disturbing turn of events.
Then again, I suppose that Floki Inu represents the beauty of the free market. Yes, FLOKI is one of the “easiest” trades you can make because you only have to watch one factor. But watching that one factor is a difficult and unpredictable proposition. As always, the choice is up to you.
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, Josh Enomoto 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.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.