What exactly is Floki? What’s the deal with this cryptocurrency’s recent surge in popularity?
It’s difficult to put into words how quickly the bitcoin industry is changing. Because by the time the dust had settled on a crypto token’s meteoric rise, a new obscure token would, more often than not, have surpassed the previous star in no time.
This is exactly what is occurring with meme coins, with the most recent star being the now-famous Floki Inu.
On September 13, Elon Musk posted a photograph of his Shiba Inu puppy with the message “Floki has arrived,” causing the meme coin Floki Inu to rise 1,000 percent in only two days.
This was the start of a meteoric surge in the value of this meme coin. According to Floki’s website http://theflokiinu.com, this cryptocurrency is community-owned and inspired by Tesla and SpaceX CEO Elon Musk’s Shiba Inu.
An unknown individual known only as Ryoshi designed the currency in August 2020.
Elon Musk has been seen putting his weight behind the project since March of this year. ‘I am buying a Shiba Inu,’ he tweeted in March 2021. ‘My Shiba Inu will be named Floki,’ he later tweeted in June.
The price of Floki Inu is now $0.00007731, with a trading volume of just over $16 million. This implies you may get a total of 1,00,000 coins for just $7.7. According to coingecko.com, crypto currencies surged by 24 percent in just 24 hours on October 18.
However, given the abysmally cheap price, the price increase does not represent a significant gain.
The meme coin, on the other hand, has risen 1,200 percent in the last two and a half months, from August 1 to October 15. On August 1, it increased from $0.000005 to $0.000065 per piece. On October 15, it increased to $0.000065 per piece. It increased by more than 1,200 percent in only two and a half months. According to the statistics on Coincodex, a $500 investment on August 1 would have increased to $600,000 by October 15.
What is a meme coin, exactly?
Meme coin is a cryptocurrency that is linked to a certain subject. Dogecoin, named after a popular dog, was the first meme currency. Shiba Inu and Floki Inu are two additional meme coins.
Meme coins are very volatile cryptocurrencies, despite the fact that there does not appear to be a compelling explanation for this incredible rise.
Experts are trying to figure out why these meme coins have become so popular. The existence of a robust community behind these currencies is one of the reasons for their spread. Another factor is that these coins are backed by powerful personality cults. Elon Musk, for example, has thrown his support behind Floki Inu in a series of tweets.
The third reason is that the low entry threshold encourages regular investors to rush to meme coins, driving up their price.
Meme coins are traded on Indian crypto markets.
Despite the phenomenal rise of these coins, Indian cryptos are hesitant to join the bandwagon.
“Exchanges like us don’t sell these currencies because, unlike western markets, in India, we focus a lot on consumer security and prioritise it the most, which I feel is the proper thing to do,” says Sharan Nair, chief business officer of CoinSwitch Kuber. We are taking a wait-and-see attitude to these currencies in order to guarantee that clients do not lose money by investing in them.”
“All these currencies are aiming to imitate the so-called success of DOGE coin,” he says, dismissing the rapid price surge of meme coins. The majority of investors in these coins are novices looking to earn quick money. They have no understanding of cryptocurrency or blockchain.”
To summarise, meme coins are very volatile, even more so than traditionally volatile cryptocurrencies such as BTC, ETH, XRP, and ADA. Unfortunately, there are no solid foundations underlying the rise or collapse of meme currencies, and it’s impossible to predict which one will rise next and when.
