The Floki INU team has responded to recent rumors suggesting its emergence from Coinbase, stating that the situation has been misrepresented and taken out of context. Although some crypto enthusiasts were shocked by claims that Coinbase would no longer support Floki, the formal response denied everything and labeled it as FUD (Fear, Uncertainty, and Doubt).
However, what is happening is that Coinbase is halting Floki trading in New York State due to regulatory restrictions. This change only affects a small portion of users and does not impact the overall trading and liquidity of FLOKI.
The project noted that New York accounts for only 2-5% of the total Floki on Coinbase, which itself only represents 1% of the token’s global trading volume. The Floki team assured that even if the token is removed from Coinbase, the impact would be minimal.
New York’s Strict Crypto Regulations: The Reason
This confusion stems from New York’s historically restrictive stance on cryptocurrencies. The state has long been known for its BitLicense regulatory framework, which imposes strict requirements on crypto exchanges and tokens seeking approval for trading within the state. As a result, many cryptocurrencies have struggled to meet these requirements.
For instance, among the numerous meme coins listed in New York, Coinbase has only listed six meme coins (Bonk, Pepe, Wif, Wif, Floki, Turbo, and Giga) during this cycle since the last Bitcoin halving in May 2024.
Interestingly, Floki, Turbo, and Giga were all listed in New York about 1.5 months ago, and now all three are affected by the trading halt. This might make one ponder that the center of all the commotion is more about policy decisions rather than an issue specifically targeting Floki.
Floki: Beyond New York
Despite the news, Floki has made significant strides towards mainstream recognition. Just a few months ago, the Commodity Futures Trading Commission (CFTC) Global Markets Advisory Committee highlighted Floki as a case study for utility tokens. Ethereum and Avalanche were also included as part of the CFTC’s initiative to classify specific digital assets.
Finally, the Floki team urged users not to be misled by false information, adding that the token remains one of the most traded memecoins globally, alongside Dogecoin (Doge) and Shiba Inu (Shib).
