Meme-coin Profiteering Will Eventually Drive Floki Inu to the Dogs
InvestorPlace - Stock Market News, Stock Advice & Trading Tips While Floki Inu is undeniably a risky cryptocurrency asset, with Bitcoin extremely stretched, FLOKI offers better bang for the buck....
Under the framework of canine-inspired cryptocurrency meme coins, I’m certainly a Johnny-come-lately. However, I don’t wish to claim a great reawakening. When it comes to building a portfolio of stable and trustworthy investments, Floki Inu (CCC:FLOKI-USD) might as well be The Communist Manifesto.
So don’t think that I’ve lost my mind or that this a grift toward meme-coin profiteering. Other than the meme coins that I owned prior to them being labeled as such, I have very little interest in putting my own money at risk, save for maybe throwing in a few bucks for entertainment purposes. And that does bring up an interesting point about Floki Inu.
Sure, the interest in these extremely speculative, blockchain-based vehicles is sky-high. But where do regular folks — the people who previously had no interest in cryptos — get Floki Inu? Per the markets listing for FLOKI, the platforms where you can acquire the tokens are limited. Further, the provenance of some of these exchanges is questionable.
That’s why the Guardarian exchange brought some possibly game-changing news; well, at least game changing in the framework of Floki Inu and other meme coins.
As InvestorPlace’s financial news writer Samuel O’Brient mentioned, Guardarian “allows investors to buy and sell all major cryptocurrencies and tokens with its on-ramp fiat service. Put another way, you can now purchase Floki with credit and debit cards.”
Back in the day when Bitcoin (CCC:BTC-USD) caused a stir for dropping to $5 from $13 — did I just hear you utter the Lord’s name in vain? — it was challenging to acquire the original crypto for cash. The barrier to entry was probably a key contributor to the initial explosiveness of BTC: presumably, people would have bought it if they could do so easily.
Thus, Guardarian could be a microcosmic paradigm shift.
Floki Inu and the Power of the Masses
If you’re still thinking that Floki Inu is wildly speculative, you’re not wrong. I’m not recommending that you buy these tokens. Sure, by acquiring assets priced at fractions of a fraction of a fraction of a penny, nominally small movements could yield massive returns. The arithmetic doesn’t lie.
But the law of small numbers — or in this case, the law of microscopically small numbers — can work the other way, too. You don’t need much to suffer gargantuan losses so don’t get fooled by just the optimistic spectrum.
No, Floki Inu will likely always be a speculative bet — heck, we don’t even know if it will be a going concern. But especially in the crypto sector, risk is relative. With Bitcoin shooting to the stratosphere, the risk-reward profile shifts to the underbelly of the blockchain arena.
How so? As I’ve mentioned previously, if you want to make big boy profits just from Bitcoin, you must put down big boy dollars. On the other hand, you only need to put small boy dollars into Floki Inu to possibly — again, emphasis on possibly — see big boy returns.
As well, the higher Bitcoin rises, small percentage drops yields nominally huge losses. For instance, we just recently witnessed BTC drop to approximately $60,000 from around $67,000. That 10.4% loss of course translates to a loss of $7,000.
Imagine, $7,000. You could put that money into a Floki Inu or similar meme coin at the right time and you might 10X that initial wager. But then the question becomes, which is more likely: that you can earn tens of thousands of dollars through owning one BTC or putting a few thousand bucks at risk and gaining monstrous profits?
Not a Gamble to Take Lightly
Personally, I find Bitcoin stretched. The fact that it dropped 10% so quickly suggests that rationality is slowly but surely creeping in. At a certain point, the risk for putting so much money into a trade becomes overwhelmingly large relative to the potential reward.
Nevertheless, I’m not giving the green light to buy Floki Inu. With limited volume likely implying wide bid-ask spreads, you need to make very large gains to make this venture worthwhile. In addition, if BTC collapses, it could take down the entire crypto ecosystem.
Then again, it’s your money. And if anything, Guardarian made playing this decentralized lottery a whole lot easier.
On the date of publication, Josh Enomoto held a LONG position in BTC. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
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