Meme coin Floki Inu (CCC:FLOKI-USD)has shot up over 5,000% in value since its launch in June. To most crypto investors, myself included, dog-themed cryptos seem like a fanciful joke.
With hardly any use-cases, junk coins such as Shiba Inu (CCC:SHIB-USD), Floki Inu, and others have garnered much attention from the market.
Though a few developments have Floki’s investors excited for the future, it isn’t a worthwhile long-term crypto play.
To quote my fellow Investorplace colleague Alex Sirios, “Floki Inu is a junk coin.” However, as he rightly pointed out in his piece, it’s a junk coin with a massive following.
This last year has been the year of the meme traders, who have proved that a boost from a community can take any stock to unfathomable heights.
Still, the power of memes can only take an asset so far, especially in the crypto realm. For FLOKI to capture the imaginations of the top players in the crypto-sphere, it needs to work on its fundamentals; otherwise, it’s going to the dogs.
Recent Developments
If you read through the Floki Inu whitepaper, you might get the impression its developers have created a long-term winner. However, the reality is that it hardly has any utility and even lags most of its peers in this department.
It essentially has three core projects which it hopes will drive value for it in the future. These include an NFT marketplace, a gaming metaverse and a content platform. NFTs will be a major part of its future and its applications in the metaverse.
Furthermore, Floki Inu has also embarked on an aggressive marketing campaign to create awareness about its platform. Its logo will feature on football giant S.S.C. Napoli kits soon.
Moreover, boxing champion Tyson Fury recently signed a deal and will appear in Floki’s NFT token game called Valhalla. Additionally, it is also partnering with Kimbal Musk, Elon Musk’s brother, to tackle global hunger.
In August, Floki announced its partnership with e-commerce facilitator Cryptocart to enable its users to purchase online from over 1,500 stores. Though it’s nothing too impressive, the development could add value to FLOKI. Moreover, Floki’s association is linked to Musk’s brother, which is unlikely to draw much attention from investors.
The Outlook Here Is Shaky
It’s virtually impossible to predict where a meme coin such as Floki Inu may end up in a year. Its developers have termed it “the people’s currency.”
They claim to make it the most popular digital asset globally. At this stage, though, it is nothing more than wishful thinking.
While it could make you a lot of money in the short term if and when its supporters have their way, it doesn’t have any major long-term catalyst that could stabilize its price.
WalletInvestor and other crypto news sites are bullish on Floki’s potential, though. WalletInvestor considers Floki Inu to be an incredible one-year investment.
The platform estimates that by 2026 the crypto could be priced at $0.00295. We are looking at over a 1,800% upside based on this forecast.
Gov Capital predicts that FLOKI could be priced after one year at $0.00084, pointing to over a 500% gain.
These estimates are highly encouraging, but I wouldn’t want to rely on them, especially with extremely volatile crypto-like Floki.
Bottom Line on FLOKI
As a crypto investor, meme tokens such as Floki Inu will probably never be part of my portfolio. Use-cases are imperative for any long-term crypto investor to be serious about a digital asset.
Unfortunately, as with other meme coins, Floki Inu’s value is driven merely by hype rather than its fundamentals. Hence, it’s tough to take Floki Inu seriously at this stage.
On the date of publication, Muslim Farooque 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.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
