For those of our readers that are based in London, you’ve probably seen adverts floating around about Floki. The first time I saw it was on the tube on Monday evening. The advert simply said: “Missed Doge? Buy Floki”. It then had a simple crypto disclaimer underneath. After coming home and doing some research, Floki appears to be the latest upcoming altcoin that could be set to explode higher. In fact, over the past 24 hours, the coin has rallied 140% in value.
Looking at the value potential
On the face of it, Floki appears to be another altcoin with not much substance. It’s name is derived from Elon Musk’s dog. This in turn is a play on dog related meme coins, namely Dogecoin and Shiba, both of which exploded in market value. So could Floki move in a similar way? In short, yes it could. Buying coins for speculative purposes even without them having fundamental value isn’t a crazy concept in the crypto universe.
However, one point we would flag in this regard is the potential upside from current prices. It currently has a market cap of $1.42bn, according to live figures on it’s website. In contrast, Shiba has a market cap of $44.5bn, putting in at number 8 on the overall ranking list.
So even if Floki takes off and gets the flow needed to push it into the top 10 coins by market cap, this would only be a 40x return. Now this isn’t anything to complain about. However, for investors thinking that this could be a 1000x return situation, they are sadly mistaken.
That’s the best case scenario as well. In all likelihood, these kind of altcoins could see less aggressive spikes over time as more and more of them pop up. Therefore, although we do think Floki is worth a buy, we would be looking for a much more reasonable 5-10x return in coming months.
What Floki stands for
Parking the valuation to one side, the reason why we think the direction for the coin is higher is due to several points. Firstly, the aggressive marketing campaigns. Floki commented that the push on public transport ads in London was to “legitimise” the coin and increase the “confidence of the average consumer” to invest. I think this is a smart move, with a marketing budget set at $1.5m currently.
If the pump can happen just based from London, what about mirroring this in New York, LA, Hong Kong or other major cities?
Another point worth noting is that Floki does have good aims with the higher valuation. It’s working on three flagship utility projects according to the website. These are an NFT gaming metaverse known as Valhalla, an NFT and merchandise marketplace known as FlokiPlaces, and an education platform known as Floki Inuversity.
It has also partnered with Elon Musk’s brother (Kimbal Musk) on his Million Gardens Movement, involved in tackling food insecurity in the world.
Overall, we would buy Floki due to the marketing push and recent spike, but would temper expectations on how high this thing can go.