Fleeting Floki Fiasco: The Rise, Fall, and Lessons from the Floki Chain Scam
Memecoins were wildly popular in 2021 with the rise of Dogecoin and Shiba Inu. This rise in popularity of memecoins led to the creation of thousands of different memecoins.
Most of these memecoins turned out to be complete scams. And the type of scam that did not gather any amount of traction and faded into obscurity with a whimper.
One of these scammy meme coin projects was Floki Chain. It’s important to note that Floki Chain is not related to the meme coin Floki from what we can tell. It appears that the founders of Floki Chain chose the name Floki Chain in order to capitlize on some of the brand equity that Floki has built up over the past few years.
With that in mind, this article will cover exactly what happened to Floki Chain.
What Happened to Floki Chain?
First of all, there is not much information available about Floki Chain available because the team decided to delete the official Twitter account and the official website.
That’s a sure sign that a project is no longer active, so we can start by saying that Floki Chain is not an active project.
So, what exactly happened to the Floki Chain project?
It’s a long story, but the basics are that the project launched on Ethereum in December 2021. Things looked great with the launch until users wanted to sell their FLOKICHAIN tokens.
The smart contract did not allow users to sell their tokens.
The project was a scam from the very beginning. Basically, what ends up happening is that users buy tokens and then cannot transfer (ie. sell) them. They just ended up sending Ether to the founders in exchange for worthless, useless tokens.
We can surmise that this happened from various posts on Twitter from users stating they could not sell their tokens. A quick glance at the price chart of FLOKICHAIN also shows this is the case:
That price chart is accurate. Though the price of FLOKICHAIN is so small that it does not appear. The more important metric is that the trading volume of FLOKICHAIN has been $0 for almost all of FLOKICHAIN’s existence.
The one spike in price was from $5 worth of trading volume on Uniswap.
What To Do If You Got Scammed by Floki Chain?
Sadly, there’s nothing that you can do if you were scammed by Floki Chain. The founders are anonymous, which makes it impossible to sue them or for them to get arrested.
There’s a 0% chance that anyone that fell for this scam gets any of their money back from the founding team.
It’s an expensive lesson on how not to get scammed in cryptocurrency. With that in mind, here are some tips to avoid falling for scams like Floki Chain in the future.
Tips to Avoid Getting Scammed by Crypto Projects
This is not an exhaustive list of all the ways to avoid getting scammed by crypto projects. However, following these tips should help you avoid the most basic crypto scams. Scammers are fairly complex these days and it’s rare to see a scam as basic as Floki Chain in the current crypto marketplace.
Avoid Projects with Anonymous Founders
The first tip to avoid getting scammed by crypto projects is to not invest in projects that have anonymous founders.
It’s tempting because projects with anonymous founders will often find creative excuses for why they have not provided their identity.
All those reasons are complete trash – there’s a 99% chance the project is a scam, so the founders don’t want to say their identity because no one wants to be branded as a scammer.
For this reason, we strongly recommend avoiding cryptocurrency that have anonymous founders. Have there been successful projects that have anonymous founders?
Yes, there have been successful projects with anonymous founders. However, they are a rarity and it’s really not worth the risk.
Avoid Projects that Use The Name of Other Projects
The next tip is to avoid projects that use the name of other projects. Floki Chain did this with Floki.
The first problem is that there could be legal issues with the project using the name of a different project, company, or person.
Of course, any legal problems never actually arise because projects that do this never last more than a few months.
The bigger issue is that a project using the name of another project shows that the founders are looking for a shortcut to successfully brand their project. Basically, using the name of another project is a quick way to build a brand because, well, the brand name is stolen from the other project.
This is most commonly done with memecoins copying other memecoin names (Shiba Inu and Shiba Inu are the two most common). Memecoins also like to use some variant of Elon Musk or Tesla in their name because Musk is frequently associated with memecoins and memes.
Our recommendation to avoid cryptocurrency scams?
Don’t invest in projects named after another project, company, or person. This is one tip where there aren’t any exceptions to it. We cannot think of a single project that used that naming strategy that turned out working out well.
Projects Don’t Do Anything Innovative
Our final tip is to avoid projects that aren’t doing anything innovative. This is difficult to research with Floki Chain because the website was taken down, but from what we have seen the project did not do anything truly innovative.
In fact, the project didn’t actually do anything. All the founders did was make pie in the sky promises full of buzzwords, but they didn’t work towards making those ridiculous promises a reality.
To summarize, avoid projects that don’t do anything innovative. You should also avoid projects that make promises that are way too big.
Is FLOKICHAIN a Good Investment?
It should go without saying, FLOKICHAIN is an absolutely terrible investment. The project does not even have a website or Twitter account.
It’s just burning money at this point if you invest in FLOKICHAIN.
To summarize, Floki Chain is a complete scam of a cryptocurrency project. The token, FLOKICHAIN, cannot even be sold.
There were enough warning signs with this project that seasoned investors knew not to invest in this project.