Everyone and their dog is launching something to do with the metaverse, Floki Inu (CCC:FLOKI-USD) included.
Source: Zie Project/ShutterStock.com
All it took for cryptocurrencies to jump on the metaverse bandwagon was a company of Facebook’s size to change its name to Meta Platforms (NASDAQ:FB). Still, Floki Inu supporters ought to be realistic in their expectations.
The Valhalla metaverse is coming. That’s according to InvestorPlace’s Brenden Rearick.
“This particular metaverse will continue building on Floki’s NFT capabilities. It will be a play-to-earn, NFT-based gaming metaverse; this means users will be able to put their skills to the test and earn real-life income,” Rearick wrote on Dec. 7. “In addition to utilizing NFTs as in-game items, developers say these NFTs will be upgradeable. This will, in turn, make them more useful in the game and more valuable on the FlokiSwap market.”
I’m still getting used to the NFT and crypto jargon, but it sounds as though Floki Inu’s plan might provide some utility to gaming enthusiasts. Unfortunately, however, it does little to float my boat.
What I do know is that the competition for metaverse dominance is bound to be ultra-competitive. So, everything Floki Inu says Valhalla will accomplish could be accurate, but it still might not get a seat at the big boy’s table.
If you’re thinking of buying FLOKI because of this new idea, you probably shouldn’t.
That’s because as the weeks pass, the metaverse ideas popping up will get better and more utilitarian than Valhalla, putting downward pressure on the pupcoin’s price.
The Metaverse and Floki Inu
As I write this, FLOKI has a market capitalization of $1.2 billion. Penn National Gaming (NASDAQ:PENN), despite a 42% decline in its share price over the past six months, has a market cap of $8.3 billion, 7x larger than the pupcoin.
Why couldn’t a well-financed business such as Penn get into the metaverse? Or, even better, why not MGM Resorts (NYSE:MGM), whose market cap is more than double Penn’s?
And, without putting too fine a point on the subject, isn’t Meta Platforms planning to spend billions on building its metaverse? So how is Floki Inu supposed to keep up with that? The simple answer is that it can’t.
But I’ll give it credit for providing readers of the Floki Inu Whitepaper with one of the most straightforward explanations of what it’s trying to accomplish.
“Valhalla is a play-to-earn NFT gaming metaverse. In addition to being rewarded with $FLOKI for battling, everything that you obtain in the metaverse is yours to own and to sell as you intend (such as on FlokiPlaces)” Floki Inu’s Whitepaper states.
Here Comes the Competition
Unfortunately, the previous statement above has me thinking about Electronic Arts (NASDAQ:EA) and other video game companies. You can bet they will be all over the metaverse.
In early November, EA CEO Andrew Wilson discussed the idea of play-to-earn NFT games during the company’s earnings call.
“Anything that brings more people in and engages those people for more time in the context of the entertainment it would create I think it’s a good thing over time,” Wilson stated on Nov. 4.
“I think that is the very foundation of our live services. I think the play to earn or the NFT conversation is still really, really early, and there’s a lot of conversation. And there’s at some level, a lot of hype about it.”
Electronic Arts is a company with a $35 billion market cap. It will not let the current opportunity slip through its fingers because Floki Inu launched Valhalla. It has bigger fish to fry.
Now, were Floki Inu to convince EA that it was the crypto to partner with for when it is ready to create its play-to-earn NFT games, that would be an entirely different kettle of fish.
Like cryptocurrencies themselves, there’s a ton of competition coming down the pike when it comes to the metaverse.
Wilson is right. There’s a lot of hype right now and it’s way too early to bet on any crypto’s metaverse plans. Not even Floki Inu’s.
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On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.