Floki is no longer a meme coin
Meme coins are coins or tokens without any fundamental value, in which money is nevertheless invested. But they should not be confused with fraudulent cryptocurrencies — the creators of meme coins do not hide the fact that there is nothing behind their creations except jokes and memes.
However, the "memetic" nature of a coin can be deceiving. Take, for example, our today's "patient" — Floki. At first glance, this is a classic meme coin, right down to the name, logo and the team's communication with the audience. However, in fact, Floki is a traditional utility token with a fairly developed ecosystem. And who cares that the core of the ecosystem is a game?
What is Floki
Floki is a token created by community members of the famous meme coin Shiba Inu. Moreover, they used the name of Elon Musk's dog (also a Shiba Inu breed) as the name.
The play on Elon Musk's personality is also remarkable, including for the project's marketing. The businessman himself has been an active supporter of Dogecoin for several years (and continues to do so), as well as other "dog" coins.
Another exciting marketing practice is the self-positioning of Floki as "the people's cryptocurrency." There are no communist symbols or slogans — "nationality" is determined by the high degree of community participation in network management. Floki is regularly noted as one of the most "democratic" cryptocurrency networks — in the history of cryptocurrency, it is difficult to find a decision that would be made without a vote of the community.
But still, the main feature of cryptocurrency is that the creators tried to make it useful without delving too much into "serious" and boring topics.
Floki, of course, is not even trying to solve any global problems of the world economy and financial system. Still, the team managed to create a quite noticeable area of application.
The Floki ecosystem includes:
- gaming NFT metaverse Valhalla,
- platform for posting educational content University of Floki,
- marketplace for NFTs and goods Floki Places,
- a set of DeFi products for the FLOKI token.
The project ecosystem is deployed on the Ethereum and BNB Chain blockchains — the high (or rather, almost complete) compatibility of smart contracts in these blockchains allows all applications to work on both networks. The Floki token is accordingly also issued according to both the ERC-20 standard (on the Ethereum network) and the BEP-20 standard (on the BNB network).
FLOKI is used as a means of settlement throughout the entire ecosystem — from in-game transactions to the payment of rewards to stakers in liquidity pools.
FLOKI tokenomics
The issue of FLOKI tokens is 10 trillion. Because of this, the cost of one token is very low — only $0.00003275 at the time of writing. And even the coin creators themselves call it extremely unlikely to reach $0.01.
The total capitalization, however, exceeds $310 million (107th place in the Coinmarketcap ranking by capitalization). The daily trading volume also indicates consistently high activity in the market.
The coin entered the market in July 2021; the starting price was $0.0000042, so in two years, the growth was more than 800%. The current 2023 for FLOKI has been relatively successful — from $0.000008; the token has grown to $0.00003275. But this is still almost 10 times less than the absolute record achieved in November 2021.
Prospects for Floki as an investment asset
Floki cannot be considered one of the leaders of the cryptocurrency market - the coin is not even in the Top 100 by capitalization. And the prospects for a "market breakthrough" are not visible.
However, one cannot fail to recognize Floki's serious successes — the asset has been trading on the market for more than two years, a stable, loyal and active user base has formed around it (about half a million token holders in total across both blockchains).
It is impossible to recommend Floki as a primary investment asset despite the above-mentioned successes, at least with a clear conscience. The coin's capitalization is too small, and, by definition, it is too volatile. But as one component of an investment portfolio, Floki could have potential.