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Floki Inu (FLOKI)

Virgocx Support
Updated

Most recent update: [Nov 15, 2024] 

 

What is FLOKI? 

FLOKI is a decentralized cryptocurrency that functions as the native utility token of the Floki Ecosystem, which spans various sectors within the Web3 space. Initially created as a meme coin, inspired by Elon Musk’s Shiba Inu dog, Floki has evolved into a project with multiple utility-driven initiatives. The FLOKI token is primarily used within the ecosystem for transactions, governance, and staking, allowing holders to participate in decision-making processes via Decentralized Autonomous Organization voting.

FlOKI is designed to operate across multiple blockchains, being ERC-20 and BEP-20 compliant, allowing users to transact on both the Ethereum and Binance Smart Chain networks. The token's ecosystem includes applications in NFTs and Metaverse, with products like Valhalla (an NFT gaming platform), FlokiFi (a DeFi suite), and FlokiPlaces (an NFT and merchandise marketplace). This broader ecosystem provides real-world utility, with FLOKI serving as the medium of exchange for various services, rewards, and governance within these projects.

Who is behind FLOKI? 

Floki Inu is a decentralized community-run project, initially launched by an anonymous developer who abandoned the project shortly after its inception. The community, however, rallied around the project, took over its development, and successfully relaunched it, quickly gaining traction and recognition within the cryptocurrency space. By its first year, Floki Inu had amassed over 400,000 holders.

The project is now managed by a core team that represents the interests of its community. Much of the team operates pseudonymously, key figures include B, Sabre, and MrBrown Whale, who have become prominent figures within the Floki ecosystem. The lead developer of FLOKI, Jackie Xu, is a well-respected and doxxed figure in the blockchain industry with over a decade of experience. Xu's experience is significant, as he has worked on numerous blockchain projects and has been involved in both development and strategic roles in the crypto space. His background lends credibility to Floki Inu as a project, as it is uncommon for reputable developers in the industry to engage in projects that lack long-term potential or transparency.

With a Decentralized Autonomous Organization structure, where token holders can vote on key decisions, the community behind the Floki ecosystem has a direct influence on the project's development.

How does it work? 

Floki (FLOKI) operates as a versatile utility token within its ecosystem, built to integrate across both Ethereum (ERC-20) and Binance Smart Chain (BEP-20). This cross-chain compatibility allows users to store, transfer, and trade FLOKI on either blockchain, offering flexibility by leveraging Ethereum’s security and Binance Smart Chain’s lower transaction fees.

At its core, Floki is designed to combine meme culture with real utility. The project aims to differentiate itself from other meme coins by building a sustainable ecosystem that integrates decentralized finance, NFTs, and the metaverse. FLOKI plays a central role in these initiatives. The project also plans to expand this ecosystem with additional DeFi offerings, such as staking options, to provide rewards and increase token utility for its holders.

A major pillar of the Floki project is its NFT gaming metaverse, with the flagship product being Valhalla. Valhalla is a play-to-earn game where FLOKI tokens are used as in-game currency. Players can earn FLOKI tokens through gameplay, trade in-game assets, and participate in various NFT-based activities. Drawing inspiration from successful games like Pokémon, Valhalla will feature creature battles, asset ownership, and unique gameplay mechanics such as a gardening system where crops are cultivated and sold as NFTs.

The Floki community also seeks to expand its educational impact through Floki University, a platform that provides users with access to crypto-focused courses, further promoting blockchain adoption and literacy. By using FLOKI tokens to access content, the platform fosters a community of informed users who contribute to the growth and sustainability of the Floki ecosystem.

The FLOKI Token and Tokenomics 

FLOKI has a total supply of 10 trillion FLOKI. According to BscScan and Etherscan, there are over 400,000 holders of FLOKI on Ethereum and BSC combined. As of November 14th, 2024, the market cap for FLOKI amounted to approximately US$ 2,166,466,628. The circulating supply of FLOKI is 9,685,493,754,682.00. The fully diluted valuation is $2,235,302,716.

Floki Inu has a token burn of 1% each transaction, transaction fees of 5%, and a transaction redistribution to holders of 5%.

Security 

FLOKI’s security is rooted in the blockchains it operates on: Ethereum and Binance Smart Chain (BSC). As an ERC-20 token on Ethereum, FLOKI was initially secured by Ethereum’s proof-of-work (PoW) consensus mechanism, where transactions are validated by a decentralized network of miners. Since the famous Merge in 2022, Ethereum switched to the proof-of-stake (PoS) consensus mechanism. PoS secures the blockchain through validators who stake ETH as collateral to validate transactions and propose new blocks. Validators are chosen randomly, with higher staked amounts increasing the likelihood of selection. This incentivizes honest behavior since any attempt to cheat risks slashing their staked ETH.

On BSC, FLOKI exists as a BEP-20 token and is also secured by PoS. BSC uses 21 elected validators who stake BNB to validate transactions and maintain the blockchain’s integrity. These validators are rotated every 24 hours to maintain decentralized and reliable security for the network.

Drawbacks and risks 

Floki Inu presents several risks, primarily due to its extreme volatility and speculative nature. As a meme coin without intrinsic value, FLOKI is highly susceptible to market sentiment. It can be considered as a volatile medium of exchange within the decentralized ecosystem. While the token has surged by nearly 100,000% since its launch, it has also experienced sharp declines, including drops of over 50% in a single day. The high volatility of FLOKI makes it difficult to maintain stable pricing and undermines its practical use as a store of value.

Additionally, the token's low liquidity poses challenges when transferring or exchanging large amounts of FLOKI. With an average trading volume of $100 million, which is significantly lower than major cryptocurrencies like Bitcoin or Ethereum, the market for FLOKI can be illiquid. In situations of high demand or market downturns, this can lead to difficulties in executing transactions.

Governance and accountability issues are also concerns. The Floki Inu team operates under pseudonyms and this anonymity raises doubts about accountability. In the past, two rogue developers manipulated token supplies and misappropriated transaction fees, which exposed vulnerabilities in the governance system. Although these individuals were dismissed, the incident highlighted the risks inherent in a decentralized, pseudonymous project structure.

Due Diligence  

Before listing FLOKI on the VirgoCX Platform, VirgoCX performed due diligence on FLOKI and determined that FLOKI is unlikely to be a security or derivative under Canadian securities legislation. VirgoCX’s analysis includes reviewing publicly available information on the following:  

  • The creation, governance, and location of FLOKI and/or its primary development team; 
  • The supply, demand, maturity and liquidity of FLOKI; and 
  • Legal and regulatory risks associated with FLOKI.  

Statutory Rights under Securities Legislation 

VirgoCX is offering Crypto Contracts on crypto assets in reliance on a prospectus exemption contained in the exemptive relief decision Re VirgoCX Inc. dated May 30th 2024 (the Decision). Please be aware that the statutory rights in section 130.1 of the Securities Act (Ontario) and, if applicable, similar statutory rights under the securities legislation of each other province and territory in Canada do not apply in respect of the Crypto Fact Sheet to the extent a Crypto Contract is distributed under the prospectus relief in the Decision. 

Further Reading 

To learn more about the technology behind FLOKI, check out these in-depth resources here: 

 

 

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