It’s been a tough week for cryptos across the board. Floki Inu (FLOKI-USD) has struggled alongside its pupcoin peers, but it may have an exciting new catalyst on the horizon. Two days ago, a tweet from a motorsports news outlet hinted that the FLOKI crypto may be partnering with Alfa Romeo’s Formula 1 (F1) racing team. Although the tweet mentioned that the deal would be announced in the days to come, no specific date was given.
What’s Happening With the FLOKI Crypto
The following was tweeted two days ago, on Feb. 15. It has generated quite a bit of momentum, mostly from those who hold FLOKI. The meme token’s digital army has made it clear that it wants to see Floki’s logo on the back of an F1 racing car.
Alfa Romeo F1 is set to announe a new sponsorship deal with Floki Inu (FLOKI), dog-themed cryptocurrency, in the coming days.
— Decalspotters (@decalspotters) February 15, 2022
Despite the buzz created by this rumor, FLOKI crypto prices have not been rising. As of this writing, they are down 6% for the day and 17% for the week. This price action shouldn’t be seen as a result of this news, though. It can be attributed to the general market forces that continue to push much larger cryptos down.
Why It Matters
How likely is the F1 rumor to be true? As of now, it definitely seems possible. Let’s examine what we know so far in context.
Decalspotters, the outlet responsible, is primarily focused on sponsorships within the racing industry. It stands to reason that a leading outlet in the space would be the first to learn about an important sponsorship for a top racing name.
As of now, there has been no direct confirmation from either company. Benzinga reports that while Floki’s developers have declined to comment on the rumors so far, they also did not deny it. This implies that it could happen but that the deal is likely still being finalized.
One thing we know about Floki’s team is that it has been consistently aggressive in its marketing efforts. In October, the pupcoin’s price surged when its team announced a major TV advertising push. It’s worth remembering that the FLOKI crypto is powered by a digital army that loves to put its logo on things. Wanting to put it on a popular F1 racing car would be absolutely on brand for the team behind it, particularly as it would lead to exposure in European markets.
F1 racing has a large and dedicated fan base, not entirely unlike the FLOKI crypto. This type of partnership would be the first of its kind, but it makes sense for Floki’s team.
What It Means
The type of exposure that a sponsorship team with Alpha Romeo would bring would create significant buzz for FLOKI. It would be exactly what the pupcoin needs to pull itself out of the current market-generated slump that has pushed it down this week.
It would also serve to lend it credibility at a time when meme coins are still struggling to be taken seriously in some circles. Even its recent foray into the metaverse through a new gaming venture hasn’t been enough to help Floki overcome the current negative market momentum. This potential partnership could be exactly what the token needs to start rising again.
Investors should absolutely be keeping an eye out to see if more details are announced.
On the date of publication, Samuel O’Brient 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.