Up nearly 600% since the beginning of the year, FLOKI, now one of the leading memecoins in the cryptocurrency market, has suffered a drop of more than 20% in the last 24 hours. Why did FLOKI see its price suddenly drop?
A remarkable fall in the last 24 hours for FLOKI
Despite its success since the beginning of the year, the now famous memecoin FLOKI has suffered a price drop of more than 20% over the last 24 hours.
The name of the cryptocurrency FLOKI comes from Elon Musk's Shiba Inu dog, which he named ” Floki ” The crypto community was then inspired to create the eponymous memecoin. But what was supposed to be a simple joke ended up becoming a top 100 cryptocurrency exceeding the symbolic threshold of one billion dollars.
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Potential reasons for this fall
One of the reasons for the sudden drop in the FLOKI price is certainly the launch of the Simon's Cat (CAT) cryptocurrency. Indeed, Binance had announced that it would distribute an airdrop in CAT tokens based on a snapshot taken between August 29 and 30 for all holders of more than 400,000 FLOKI tokens.
It is then highly likely that a good number of people sought to make themselves eligible for this airdrop by acquiring FLOKI, before reselling their tokens once the deadline had passed, mechanically pulling the price down.
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Additionally, memecoin enthusiasts now seem to be turning to the Tron ecosystem, particularly with the launch of the SunPump token launcher, which is reminiscent of Solana's launcher, SunPump.
Although the reasons for the 20% drop in the price of the FLOKI token are still unclear, the hype around Tron and its new memecoins is also an avenue to explore, as this could constitute a transfer of capital.
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Source: TradingView
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Passionate about the blockchain ecosystem, I like to deepen my knowledge and share my discoveries. In a perpetual quest to learn more about cryptos, I recently joined the Cryptoast Research team where I provide a weekly fundamental analysis.
Theo Zananiri
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