The Floki decentralized autonomous organization (DAO) has received overwhelming support for liquidity allocation aimed at establishing a Floki exchange-traded product (ETP), with 99.9% of votes endorsing the plan.
The proposal was approved on December 27, amassing 332.7 billion votes in its favor. Notably, there were no opposing votes.
As a DAO, Floki operates in a community-driven manner, meaning that significant project decisions, including major partnerships, token burns, and product launches, are determined through on-chain governance votes by FLOKI token holders.
This decision sets Floki on the path to becoming the second memecoin to launch an ETP on a regulated exchange, following Dogecoin’s example.
The Floki ETP is scheduled to debut on the SIX Swiss Exchange in the first quarter of 2025. SIX is Switzerland’s largest stock exchange and the third biggest in Europe.
“With the Floki DAO voting overwhelmingly to approve the proposal for liquidity for the Floki ETP, Floki is poised to become the only memecoin besides Dogecoin to have an ETP on a regulated stock exchange by January 2025,” said B, a core advisor at Floki. “The introduction of the Floki ETP on the SIX Swiss Exchange marks an almost unprecedented step for the legitimacy of memecoins!”
An ETP enables investors to gain exposure to assets—like cryptocurrencies—via regulated stock exchanges without needing to hold the underlying tokens directly. Similar to an ETF, an ETP mirrors the asset’s performance, facilitating both institutional and retail investors’ secure investments. This creates a bridge between crypto and traditional finance (TradFi), providing seamless access to digital assets.
The proposal, presented on December 25, sought approval to allocate part of the 16.3 billion FLOKI tokens from the community buyback wallet to inject liquidity into the ETP. The tokens are currently valued at around $2.8 million. While some tokens will be designated for the ETP, the remaining amount will be burned to decrease supply.
Floki, currently valued at $1.73 billion according to CoinGecko, ranks as the seventh-largest memecoin by market capitalization. Despite recent downward trends, Floki has achieved a 400% increase since the onset of 2024, trading at $0.00017 at the time of this report.
The launch of the Floki ETP comes after recent acknowledgment by the U.S. Commodity Futures Trading Commission (CFTC), which classified Floki as a utility token during the Global Markets Advisory Committee (GMAC) meeting on November 21.
Floki was featured alongside Ethereum (ETH) and Avalanche (AVAX) during ongoing discussions regarding regulatory clarity for digital assets.
A pivotal reason for the CFTC’s classification was Valhalla, Floki’s forthcoming NFT-based metaverse game expected to launch in early 2025. Valhalla will utilize FLOKI as its main in-game currency.
Initially created as a meme-coin inspired by Elon Musk’s dog, Floki Inu has evolved into a comprehensive web3 project. It functions as a token on both the Ethereum network and the Binance Smart Chain, complying with the ERC/BEP 20 token standard. The project is well-known for its utility, charitable initiatives, and meme culture, supported by a committed community of fans.
With the recent rise in the cryptocurrency market that has pushed Bitcoin past an all-time high of over $70,000, the opportunity for Floki to see a significant price increase is being considered.
Nonetheless, it’s important to acknowledge that for Floki to hit $1, its current market cap of $2.4 billion would need to increase by 4,000 times (4,000X). While this seems highly unlikely, there are five compelling reasons why Floki might experience a price rise during this bullish market, though not reaching $1.
The shift from playful to functional
Much like Dogecoin and Shiba Inu, meme coins that have transitioned from being mere creations for enjoyment to promising ventures with potential growth, Floki Inu has too seen considerable advancement over time, introducing new functionalities that enhance its use.
A significant addition is the Valhalla NFT Metaverse, a gaming platform that aims to engage with the $1 trillion Metaverse industry and position itself as a key player in the tokenization sector, projected to reach $16 trillion by 2030.
At the heart of Valhalla is the FLOKI token, which powers various Play-to-Earn mechanisms including a gardening system, unique in-game characters called Vera, an intricate battle system, a ship system within the game, and an item system.
Currently available on the Optimism Goerli Testnet, Valhalla permits players to earn and gather FLOKI tokens through gameplay. The game features top-tier gaming mechanics on the blockchain, integrating on-chain gaming interactions and upgradeable NFTs.
Developed by a team of 11 individuals, led by MrBrownWhale, a well-regarded crypto veteran, NFT expert, and Ether Cards council member, along with Jackie Xu, a blockchain expert with ten years of experience in the industry working with notable names in crypto.
Within the Floki ecosystem, Floki Finance (FlokiFi) distinguishes itself as a decentralized financial platform that provides various services such as staking, lending, and borrowing.
Other elements include TokenFI, which allows users to stake Floki and earn rewards, alongside tools for emerging Web3 platforms. Floki debit cards serve to connect traditional financial systems with Web3, while Floki University seeks to advocate for Floki and the principles of decentralization on a global scale.
Community growth
As of March 14, 2024, there are more than 76,000 holders of the Floki token. Although the number of holders exceeded 400,000 in its inaugural year, its online presence has since thrived across multiple platforms, with prominent communities on X, Discord, Instagram, TikTok, and several other social media sites, totaling 531,000, 17,300, 22,000, and 36,900 members, respectively.
Floki Inu has also gained support from significant cryptocurrency exchanges, such as Coinhako in Singapore, which has included the FLOKI token among its list of tradable cryptocurrencies.
Burn mechanism
In the world of cryptocurrency, “burning” denotes the intentional and permanent removal of certain tokens or coins from circulation. This method is typically employed to manage a cryptocurrency’s supply, enhance its scarcity, and potentially positively influence its perceived value.
When tokens are burned, they are directed to a specific “burn address” that is unreachable, making the tokens unusable and effectively diminishing the total supply in the blockchain ecosystem.
Floki Inu has integrated token burns into its approach to regulate its token supply and strengthen security measures. Data from BSC Scan reveals that the team transferred a considerable quantity of FLOKI tokens—amounting to 2.26 trillion, valued at $52.52 million—to an unreachable address through its BNB Chain-based bridge contract in 2023.
Moreover, during the same year, the team moved 2.84 trillion tokens worth $66.11 million to an inactive wallet on the Ethereum network. These combined burns totaled $124 million, signifying one of the largest burn events recorded in the cryptocurrency domain at that time.
Following a proposal by the Floki DAO for another token burn in March 2024, the token’s value skyrocketed by over 100%.
Market Trends
Even with potential economic uncertainties affecting global markets, the crypto market appears to show encouraging signs with new all-time highs for Bitcoin and ongoing development within blockchain technology. These elements may create favorable circumstances for a surge in Floki’s price.
Examining Floki’s valuation on CMC shortly after Bitcoin’s new peak, it neared its current all-time high of $0.0003, reached in 2022. While Bitcoin exerts influence on the broader crypto market and asset valuations, and in light of historical halving occurrences, Floki is expected to follow the upward trend of Bitcoin, although not necessarily in precise alignment.
Anticipated marketing for the Valhalla game
Despite having launched in 2023, the game has recently received numerous updates. A significant recent update is the addition of a Chinese version of the game. The team indicated that this choice was driven by the large community in Asia and the intent to enhance the game’s accessibility on a global scale.
As Floki is utilized as the in-game token, its valuation could be affected not only by its usage and utility but also by the aforementioned factors.
DWF Labs $10 Million buy
In early March, the digital asset market-making and Web3 investment firm DWF Labs announced an investment in Floki. This investment, which consists of purchasing $10 million worth of Floki tokens, indicates a positive outlook for the meme coin. This announcement followed shortly after Floki declared a token burn worth $11 million.
Closing thoughts
The cryptocurrency market is rapidly transforming, having declined from a peak of three trillion dollars. Memecoins are now gaining substantial visibility and playing a fascinating role in this trend. Floki, like other cryptocurrencies within its category, has the potential to provide impressive returns for investors. However, it is essential to recognize that the token might also undergo abrupt price fluctuations, typical of meme coins known for their volatile characteristics. For any investor contemplating entry into this market, comprehending the associated risks is crucial.
Similar to numerous meme coins prior to it, Floki coin (FLOKI) aims to be the cryptocurrency for the masses. The community behind Floki envisions a flourishing ecosystem centered on three main pillars: community, utility, and philanthropy.
Floki Inu represents a classic tale of rising from nothing. After the project’s founder left, it seemed like Floki was just another rug pull destined to end up forgotten among a sea of DeFi scams. Defying expectations, the Floki community united, propelling the meme coin into the top 100 cryptocurrencies by market capitalization.
Faced with tough competition from more prominent canine-themed coins such as Dogecoin (DOGE) and Shiba Inu (SHIB), is there still space for another dog in the metaverse? Can Floki distinguish itself from others and emerge as the leading coin in the market?
What Is Floki Inu?
Floki is a meme coin that was initially launched on the Binance Smart Chain (BNB). It takes its name from Elon Musk’s Shiba Inu pet and a quirky character from the popular History Channel show, Vikings.
Since its inception, Floki has transformed from an inconspicuous meme into a well-established ecosystem that includes its own decentralized applications (dApps) and non-fungible tokens (NFTs). Additionally, the project has created a bridge to the Ethereum (ETH) network, allowing holders to seamlessly transfer Floki tokens between the two networks.
A distinctive feature of Floki compared to other leading meme coins like DOGE and SHIB is its token contract. Every FLOKI transaction incurs a tax, where 0.3% of both purchases and sales is diverted to the Floki treasury. These funds are reserved for further development of the Floki ecosystem and for charitable contributions.
The Floki Coin Story
On June 25, 2021, Elon Musk made another tweet that sent ripples through the crypto news and blockchain communities. Musk revealed that he would name his Shiba Inu puppy ‘Floki’, triggering a surge of meme coins with that name being created and added to liquidity pools on decentralized crypto exchanges.
Shortly after its launch, the anonymous original creator deserted the project. Possibly inspired by the Shib Army’s success after Ryoshi’s exit, the ‘Floki Vikings’ took over the governance and development of Floki Inu.
Under the leadership of Mr. Brown Whale and Jackie Xu, Floki has matured into a vibrant digital asset ecosystem and formed significant partnerships within the blockchain sector.
Floki Inu Ecosystem
Featuring DeFi services and popular NFTs, the ecosystem offers an entertaining avenue for the Floki Vikings to delve into the potential of blockchain technology. FLOKI, the project’s native utility token, is the cornerstone of the ecosystem and its expansion.
Valhalla
Valhalla serves as the play-to-earn metaverse within the Floki ecosystem. Players create and manage unique avatars while exploring Valhalla alongside other Floki Vikings. The world of Valhalla is extensive and diverse, allowing players to shape their adventure within the metaverse.
The game includes a turn-based tactical combat system, where players collect and battle NFT creatures called Vera to earn cryptocurrency rewards. For those who prefer not to engage in competitive battles, Valhalla also offers a complex farming economy.
To participate in Valhalla and navigate the Floki metaverse, players are required to possess a specific number of FLOKI tokens. Furthermore, FLOKI is anticipated to function as the in-game currency, used for trading Vera NFTs, items, and virtual land.
FlokiFi
In line with any budding blockchain ecosystem, the Floki Vikings are working on a collection of DeFi tools and products intended to benefit their community. The first dApp under the FlokiFi initiative is the FlokiFi Locker.
The FlokiFi Locker is a decentralized application designed for securely locking liquidity tokens and NFTs. This enhances security for on-chain traders, providing them with reassurance and mitigating the risk of common DeFi scam tactics like an LP token rug pull during trading on a decentralized exchange (DEX).
This platform also introduces a deflationary mechanism for the FLOKI token, where 25% of all fees gathered by the platform are utilized to buy back and burn FLOKI tokens from the market. The remaining 75% is allocated to the FLOKI treasury to foster the ecosystem’s growth.
While no additional FlokiFi products have been officially announced, the community remains hopeful for the development of staking solutions and a decentralized exchange in the future.
Floki Partnerships
Despite being viewed primarily as a meme coin, Floki has successfully established noteworthy strategic partnerships in the cryptocurrency arena. These include leading crypto ventures like ChainLink and investment firms like Wintermute.
Moreover, Floki Inu maintains connections within the realm of professional sports. According to information from the Floki site, the project has struck marketing deals with several football clubs, including Bayer 04 Leverkusen, Cádiz CF, and SSC Napoli.
Floki Charity
The Floki ecosystem revolves around three key pillars. While community and utility are evidenced in the crypto landscape, Floki’s philanthropic efforts are where it truly excels.
One of the largest charitable contributions from the Floki community was made to the Tabitha Cumi Foundation, a Nigerian organization dedicated to enhancing the standards and quality of life for disadvantaged women and girls.
Thanks to the donations from the Floki community, Tabitha Cumi successfully renovated a rundown primary school in Kuchiko-Ijah from top to bottom. The donation also equipped the children at the school with modern learning materials and tools.
Floki contributed $1.4 million to the Million Gardens initiative, which aims to educate and empower communities to grow, prepare, and consume nutritious food.
Floki Pros & Cons
Although Floki began its journey as a meme coin, the community is clearly putting in significant effort to build out its ecosystem while making a positive impact on the world.
Pros
Philanthropic efforts – In an industry heavily focused on maximizing value, it’s refreshing to see a meme coin fulfilling its charitable commitments.
Genuine partnerships – Floki coin’s well-planned marketing agreements increase its visibility among a broader audience, helping to connect Web 3 with the wider community.
Committed community – Everyone enjoys a success story that rises from humble beginnings. The Floki community has shown they are supportive and willing to invest effort, which likely explains why Floki continues to thrive more than a year after its initial abandonment.
Cons
Disappointing metaverse – Preview videos for Valhalla fail to instill a strong sense of confidence. The visuals and gameplay appear awkward, causing players to doubt its potential for success upon release.
Limited DeFi offerings – The FlokiFi Locker is indeed a handy resource, but if the Floki ecosystem aims to evolve further, it will need to introduce additional DeFi products.
Stiff competition – When compared to other dog-themed meme coins like SHIB and DOGE, Floki lacks considerable advantages. With Shibarium on the horizon, the Shiba Inu ecosystem presents more substantial growth potential.