If American evangelicalism or another popular religion was a stock, would you buy it? For many people, I suspect the answer would probably be a sharp no. And for plenty of investors, a similar response likely arrives when a discussion of Floki Inu (CCC:FLOKI-USD) pops up: “Oh, no — another one of these stupid dog-inspired meme cryptocurrencies. When will the madness end?”
Certainly, I can appreciate that instinct. One of the ways I look at the rise of Floki Inu and the meme-coin phenomenon is the “math.” With well over 15,000 cryptos to choose from now, it’s unlikely from a base probability perspective that FLOKI will be the one to rise above the rest.
True, you can’t just rely on base probabilities, as each crypto commands its set of loyalists. Floki Inu has attracted a cult following that gives it a much higher profile than some random blockchain project somebody typed up in their garage.
Still, let’s be real. When you’re dealing with publicly traded assets that are shifting hands for fractions of a fraction of a penny, alarm bells inherently go off. Yes, as I’ve mentioned in the past, the law of small numbers can work wonders. Therefore, you can take a smaller nominal bet and get an outsized reward. I’ve also argued that such a profile may be superior to a larger bet for a smaller reward potential.
However, the opposite is also true. It won’t take much for Floki Inu to crumble. And if the meme token disintegrated completely — well, I guess blockchains never die but simply become irrelevant — who would care in the long run?
But the answer could be quite a lot, and that’s the dilemma.
Floki Inu Is Built on Belief
Belief is a powerful human motivator — perhaps the most powerful. Further, as studies show, belief in non-belief is another burgeoning force, especially among young demographics. What’s this got to do with Floki Inu? Well, how good an investment this is depends on how many people believe in the future metaverse proponents envision.
If you think about the token’s fundamentals, the underlying project aims to create a robust metaverse economic ecosystem. I don’t want to get into the granularity, but in summary, FLOKI is attempting an incentivization structure within its gaming metaverse called Valhalla.
Now, I get the broader concept of the metaverse being the next generation of connectivity. First, the internet allowed computers to be connected to each other. Today, with VR/AR technologies, we can connect our personalities. Eventually, as conspiracy theorists might extract from what they term predictive programming, our entire beings can be connected to the internet.
Honestly, if I want to talk to you, I’m gonna talk to you in real life. And I’m not the only person who feels this way.
But isn’t that impulse missing the point about Floki Inu? If people truly believe in the metaverse, why would you not buy FLOKI? And on the flip side, if you don’t have faith in that future, this crypto is one of the last things you should be buying.
Before You Click Send…
If you want to try your hands at Floki Inu and its fundamentals, your focus should be on the psychology of the metaverse rather than the metaverse itself. As you know, there are many belief systems. But what they all have in common is that they fulfill a human desire for belief — or provide the friction (and thus the traction) for non-belief.
If you genuinely anticipate the metaverse becoming a substantive mainstream development, then Floki Inu might work out for you. Nevertheless, this is an extremely speculative wager, so only under-the-sofa change should be deployed.
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.
