Floki Inu Pumps 220% in a Single Day Amid Memecoin Frenzy

The memecoin circus looks set to continue as Floki Inu, a token established in July and named after Elon Musk’s then-new Shiba Inu puppy, soared 220 percent, printing new all-time highs.

Advertisement-Driven Pump

One of the oft-repeated buzzwords common to almost all coins and tokens is decentralisation. In the case of Floki Inu, however, it’s pretty obvious that decentralisation is a secondary concern, given that an effort is being made by a centralised group to pump up the price.

Notably, the marketing material lacks any reference to FLOKI’s reason for existence – an omission that in itself speaks volumes and ought to already raise the alarm bells for anyone paying attention.

All over the world, various campaigns have been launched to promote FLOKI, seemingly seeking to elicit a sense of “FOMO” (fear of missing out) from retail investors looking to pile in.

This tactic appears to have been successful given the token’s parabolic price rise in the past 24 hours.

An Obvious Pump and Dump?

Traditional finance has often struggled to understand crypto valuations, but even crypto investors would struggle to put together a coherent investment case for a token such as FLOKI, a memecoin that ostensibly lacks purpose.

FLOKI isn’t alone, as a lack of utility hasn’t stopped its canine relative SHIBA from soaring in recent weeks. Remarkably, the original memecoin, DOGE, comprised 62 percent of Robinhood’s Q2 crypto revenue. Unfortunately for Robinhood, DOGE’s lack of publicity in Q3 contributed significantly towards the company’s 78 percent decline in crypto revenue.

One eagle-eyed Redditor noted that of the 158,865 FLOKI holders, a whopping 49 percent is held by a single address. Could this whale be behind the campaign pumping FLOKI’s price with a view to dumping it on retail investors? A cynic would say yes, but then again, so would a realist. Steve Hanke isn’t a fan of crypto in general, but in this case he may prove to be spot on:

A new meme coin, #Floki, is bombarding the London Underground with ads. Floki is yet another speculative asset in the mold of #Dogecoin. Meme coins have ZERO fundamental value and are only vessels for money laundering and pump-and-dump schemes.https://t.co/j8ZXFpvZci

— Steve Hanke (@steve_hanke) October 28, 2021

FLOKI isn’t even listed with any major exchanges as of yet. So it’s likely that its run will continue. Much like a game of musical chairs, retail investors would be well-advised to ensure they are not left holding the bags when the music stops.