For those who’re investing in cryptocurrency, particularly in altcoins like Floki Inu (CCC:FLOKI-USD), you realize that there’s a threat that you can lose your complete funding.
That threat is inconceivable to quantify, nevertheless it’s not zero. And that’s a message that I do know you hear from many InvestorPlace contributors. So I’ll simply add my title to the listing.
However in case you’re studying this text, you’re seemingly comfy with the danger you’re taking. The explanation that many people purchase cryptocurrencies akin to Floki Inu and “pupcoins” Shiba Inu (CCC:SHIB-USD) and Dogecoin (CCC:DOGE-USD) is for the doable reward. You’re trying on the ceiling, not the ground.
This was touched on by my colleague Josh Enomoto who appropriately famous, as produce other InvestorPlace contributors, that the volatility of altcoins is what makes them so enticing. Enomoto wrote, “In a matter of weeks and even days, you will discover your self up 1,000% in your holdings.” After all, as Enomoto and different analysts have identified, you can too see the worth of your crypto funding drop by 1,000% or extra as nicely.
That’s why, to somebody like me who’s on the sidelines of the crypto motion, this appears principally like playing. As a result of if Floki Inu or many different altcoins for that matter obtain their purpose of turning into a viable various forex, it must lose the very volatility that makes it enticing.
The Sea of Sameness
There are over 5,000 altcoins in existence. That statistic alone ought to offer you no less than a second of hesitation. Why? As a result of at their core each altcoin is making an attempt to do the identical factor. And in a permissionless setting, they can do exactly that.
At the moment Floki Inu touts three distinctive tasks: Valhalla, its NFT gaming metaverse; FlokiPlaces, its NFT and merchandise market; and Floki Inuversity, a content material/schooling platform. I suppose that every of those carries a uniqueness as a result of they’re intertwined with the Floki neighborhood, often called the Vikings.
Nevertheless, even when an altcoin has a singular software; it’s not one thing that may’t be emulated by one other altcoin. That is resulting in a “sea of sameness” and that’s why I don’t see Floki Inu as being sufficiently distinct.
The Energy of Group
Because the Floki Inu white paper makes clear, FLOKI is meant to be a neighborhood, not an altcoin. In a previous article about Dogecoin, I’ve likened this to pledging a fraternity. A technique that the Floki Inu neighborhood jogs my memory of a fraternity is its partnership with the Million Garden Movement. That is an initiative co-founded by Elon Musk’s brother, Kimbal Musk. The neighborhood of gardeners search to coach folks about a greater food plan and “educating hundreds of thousands of recent gardeners to develop their very own meals.”
Let me make my place clear. I like this. For those who’re conversant in my funding philosophy, you realize that I’m a fan of giving traders a motive past worth. And in a “sea of sameness” that I described above, this partnership is one thing that Floki Inu can level to as setting them aside.
Nevertheless, I’m unsure that it’s sufficient in and of itself, to encourage stronger neighborhood participation. In spite of everything, the group will happily accept donations of fiat forex. And they might be silly not to take action. Which means that the affiliation with Floki Inu, whereas noteworthy, will not be essentially a recreation changer.
Does Floki Inu Have a Excessive Sufficient Ceiling?
For those who’re comfy with the concept your complete funding could possibly be nugatory, you then need to ask your self how excessive of a ceiling will you require to think about Floki Inu a worthwhile funding? I think that in case you’re hoping for FLOKI to be value $1 sometime, you may be dissatisfied. However that doesn’t imply there isn’t cash to be made.
I’ll stick by what I’ve said before. I suppose throwing slightly of your enjoyable cash at Floki Inu could also be good on your portfolio and good for mankind. However don’t take a look at the altcoin as an instrument of wealth.
On the date of publication, Chris Markoch didn’t have (both straight or not directly) any positions within the securities talked about on this article. The opinions expressed on this article are these of the author, topic to the InvestorPlace.com Publishing Guidelines.
Chris Markoch is a contract monetary copywriter who has been masking the marketplace for seven years. He has been writing for InvestorPlace since 2019.