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Benzinga: Altcoin Analysis: Can Floki Inu Reach $001?


Want in on the action? You can buy FLOKI on Uniswap after funding a crypto wallet with ETH from eToro!

Another dog-memecoin has found itself surging in popularity among top cryptocurrencies. Currently trading at a fraction of a cent, many investors continue to ask the same question about these memecoins — Will Floki Inu reach $0.01? Read on to find the answer, but don't get your hopes up. Just because a coin is cheap doesn't mean there's a promise of large returns.

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    What is Floki Inu?

    Floki Inu is a ERC-20 smart contract on the Ethereum blockchain, more commonly referred to as a memecoin. This is because tokens like Floki Inu are launched with the purpose to grow exponentially off of social hype from the launch. These memecoins do not necessarily provide any unique protocols or any novel utility that make these investments sustainable.

    Floki Inu Market Capitalization

    The current market cap of Floki Inu is roughly $250 million, currently trading around $0.00002 per Floki Inu token. This is a relatively large market cap for such a low price per token. If price theoretically did climb to $0.01, that would increase the total market cap to $125 billion. This would put Flocki Inu at the #3 top cryptocurrency by market cap, behind only Ethereum and Bitcoin. Given the limited utility of FLOKI tokens, the team will need to add a lot of new features to justify a market cap as large as this.

    Theoretically there is the slight possibility that Floki Inu could reach $0.01, with a tremendous amount of trading volume and increased capitalization. Although the realistic outcome would be Floki Inu will never reach $0.01. A $250 million market cap is a lot of money for a token that does nothing; it is hard to imagine investors will want to continue buying a token with no utility. Also keep in mind this is one of many dog themed coins, all with no real utility or purpose.

    How to Buy Floki Inu

    There are many different options when it comes to purchasing altcoins like Floki Inu. You can purchase Floki Uni on Gate.io or use a decentralized exchange like Uniswap to swap another crypto for Floki Inu. A decentralized exchange is a great alternative for traders looking to avoid fiat, or wish to exchange a different altcoin. 

    To use a DEX, you’ll need to buy Ethereum on a cryptocurrency exchange. Some great choices are eToro, Gemini, and Coinbase. Once you own Ether, you'll need to send it to an Ethereum wallet and then swap your Ether tokens for Floki Inu on a DEX like Uniswap. You also may need to increase your slippage tolerance to over 5%, as investors are taxed with reflation fees among purchase and sale of Floki Inu tokens.

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    Is Floki Inu a Bubble?

    Like most memecoins, Floki Inu is absolutely a bubble. This is due to the fact that there is not necessarily any reason that price is moving –– it is completely speculation. Price rallies and exponential growth rates are not sustainable, eventually leading to a very dramatic decrease in price. From its all-time highs, Floki Inu is down about 90% –– a $100,000 investment in the token just months ago is now only worth $10,000. Floki Inu relies completely on its community of traders to keep the “hype” alive. Once investors stop advocating for the project, the bubble will burst. Many would consider the bubble to have already burst, but if the bull market continues in 2022 then there may still be upside for the token.

    What are Memecoins?

    Memecoins would be cryptocurrencies that derive from social media or cultural references. These types of coins are made to gain popularity fast, without necessarily having utility. Memecoins do not have any revolutionary protocols, they rely on jokes and cultural references to attract investors. It is important to consider that memecoins are extremely risky assets, if you are looking to invest in a memecoin do not invest more than you are willing to lose. 

    Is Floki Inu a Good Investment?

    If you are looking to make a high-risk, high-reward investment with a popular memecoin, then Floki Inu may be a great option for you. If you are looking to invest in revolutionary blockchain projects that will shape the future of DeFi, then Floki Inu may not be a great investment for you. Keep in mind that memecoins are the most volatile assets you can invest in, make sure to never invest more than you can afford to lose.

    Can Floki Inu hit $0.01?

    For Floki Inu to reach 1 cent, the market capitalization of the token would need to surpass $100 billion. This is a huge amount of capital, and given the use cases of FLOKI, it's extremely unlikely the token will reach 1 cent.

    Is Floki Inu better than Shiba Inu?

    Floki Inu and Shiba Inu are similar, but they each have different goals. Do your own research to decide which memecoin is better, as there are many factors that play a role in these projects' fundementals.

    Sources


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