When you’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 whole funding.
That threat is unattainable to quantify, however 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 identify to the record.
However if you happen to’re studying this text, you’re doubtless comfy with the chance you’re taking. The explanation that many people purchase cryptocurrencies corresponding 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 engaging. Enomoto wrote, “In a matter of weeks and even days, yow will discover your self up 1,000% in your holdings.” In fact, as Enomoto and different analysts have identified, you may also see the worth of your crypto funding drop by 1,000% or extra as properly.
That’s why, to somebody like me who’s on the sidelines of the crypto motion, this appears largely like playing. As a result of if Floki Inu or many different altcoins for that matter obtain their objective of turning into a viable different forex, it should lose the very volatility that makes it engaging.
The Sea of Sameness
There are over 5,000 altcoins in existence. That statistic alone ought to offer you at the least 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 atmosphere, they can do exactly that.
At present Floki Inu touts three distinctive tasks: Valhalla, its NFT gaming metaverse; FlokiPlaces, its NFT and merchandise market; and Floki Inuversity, a content material/training platform. I suppose that every of those carries a uniqueness as a result of they’re intertwined with the Floki group, often known as the Vikings.
Nevertheless, even when an altcoin has a singular utility; 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 group, not an altcoin. In a previous article about Dogecoin, I’ve likened this to pledging a fraternity. A method that the Floki Inu group 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 group of gardeners search to coach folks about a greater weight loss plan and “educating hundreds of thousands of latest gardeners to develop their very own meals.”
Let me make my place clear. I like this. When you’re accustomed to my funding philosophy, you realize that I’m a fan of giving traders a purpose 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 undecided that it’s sufficient in and of itself, to encourage stronger group participation. In any case, the group will happily accept donations of fiat forex. And they might be silly not to take action. Because of this the affiliation with Floki Inu, whereas noteworthy, shouldn’t be essentially a sport changer.
Does Floki Inu Have a Excessive Sufficient Ceiling?
When you’re comfy with the concept that your whole funding may very well be nugatory, then you definitely should ask your self how excessive of a ceiling will you require to think about Floki Inu a worthwhile funding? I believe that if you happen to’re hoping for FLOKI to be price $1 sometime, you may be upset. 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 have a look at the altcoin as an instrument of wealth.
On the date of publication, Chris Markoch didn’t have (both instantly 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 overlaying the marketplace for seven years. He has been writing for InvestorPlace since 2019.