Like with other “pupcoin” plays, Floki Inu (CCC:FLOKI-USD) keeps on sliding lower. This is due to two factors.
The first factor is the waning popularity of the trend that sent this once-obscure crypto “to the moon” in the first place. Shiba Inu (CCC:SHIB-USD) — which inspired Floki — and Dogecoin (CCC:DOGE-USD), the “old dog” who started to put this whole “memecoin” phenomenon into motion, have continued to perform poorly.
Secondly, cryptocurrencies at-large have been under pressure. The prospect of a tighter fiscal policy from the U.S. Federal Reserve (Fed) has weighed heavily on crypto. Worse yet, both these negative factors could continue to weigh on it.
As “pupcoins” have long since peaked and with new trends like “metacoins” coming and going since then, prospects look dim when it comes to a second wave of “pupcoin mania.” Fed policy changes will likely keep putting pressure on crypto. Ahead of higher interest rates, riskier assets are losing their appeal.
More or less, I lean bearish on all dog-themed cryptocurrencies. I will concede that both Doge and Shiba have factors that could theoretically help them recover if the crypto market stabilizes. Unfortunately, this does not extend to FLOKI-USD. Whether the crypto market bounces back or not, expect it to head lower.
The Latest on Floki Inu
Since writing about it last month, the situation here with Floki is largely unchanged. It continues to focus most of its efforts on raising awareness of its token. For instance, Floki Inu is still at it when it comes to big marketing campaigns. You may recall its marketing efforts in the U.K. last fall.
This aggressive billboard campaign grabbed more attention from regulators than it did from investors. Back in October, this crypto’s developers talked up its plans for a big U.S. TV promotional blitz during December. This doesn’t appear to have done the trick, either.
Still, it’s carried on with the promotional efforts. It most recently had a targeted campaign on Alphabet’s (NASDAQ:GOOG,GOOGL) YouTube platform. Based on its continued poor performance, it appears to have had little impact in ginning up investor enthusiasm.
It’s not the fault of this token’s developers that these campaigns have failed to do the trick. A few months ago, when “pupcoin” mania peaked in popularity, this blitz would have paid off. But market conditions have changed. This makes it hard for it to boost its value with just advertising alone.
Too Far Behind When it Comes to Utility
Again, it’s not just the falling popularity of “pupcoins” that’s pushing Floki Inu to lower prices. Monetary policy changes are hurting the performance of risky assets, crypto included. This could continue, adding another hurdle to a possible recovery for Doge, Shiba, and Floki.
Granted, it’s not guaranteed that crypto will continue to flounder. The market could instead stabilize in 2022. If this happens, the larger “pupcoins” may be able to make a comeback. That is, assuming they put in the work when it comes to improving their functionality.
In the case of Dogecoin, it may put in place the needed upgrades to bring it up to the level of other altcoins like Cardano (CCC:ADA-USD) and Solana (CCC:SOL-USD). In the case of Shiba Inu, its plans to adopt a decentralized autonomous organization (DAO) structure is a step in the right direction.
It may pave the way for other enhancements or upgrades. Doing so will allow it to shake off its “memecoin” reputation once and for all.
When it comes to Floki Inu, it is dipping its paws into the world of Decentralized Finance (DeFi). For example, it debuted a Floki liquidity pool on Inverse Finance.
But it still has a lot of work ahead of it before it catches up with Doge and Shiba, which are already behind the eight ball when it comes to utility. With “pupcoin mania” no longer a thing, even if crypto gets back to bull market mode, it’ll likely continue to struggle throughout the year.
The Verdict on FLOKI-USD
Put simply, this crypto has too many things working against it right now. Cryptocurrencies at-large are at risk of more declines. The trend that put it in the public eye hasn’t been popular in months.
Its efforts to counter this have so far failed to work as intended. Its marketing campaign has been a bust. Floki’s attempt to ride the coattails of the metaverse trend has also failed to help reverse its 70% drop from its all-time high.
With fewer catalysts in its corner compared to Dogecoin and Shiba Inu, it’s best to hold off buying “pupcoin” Floki Inu.
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.
