Coinbase Will Not Delist FLOKI Inu, but Is Halting Trading of the Token in New York

Social media has been abuzz with reports that Coinbase is set to delist FLOKI from its platform. However, the FLOKI Inu team has clarified the situation

Social media reports have been swirling with Coinbase (NASDAQ:COIN) kicking FLOKI off its platform, but the team behind the token has stepped in to clarify the situation.

According to a new post by FLOKI Inu, Coinbase is not entirely removing the token from its services. Instead, the exchange is shutting down FLOKI trading in New York. This new development appears to be linked to the State’s strict digital asset policies rather than a direct action against FLOKI.

“We can confirm that Coinbase will no longer be enabling the buying, selling, or transferring of any cryptoassets, including FLOKI, in New York State. This decision has been made by Coinbase and is due to New York's unique cryptocurrency regulations, which Coinbase has chosen not to engage with,” the team stated.

It is worth noting that New York has some of the toughest crypto regulations in the United States. Coinbase has also listed only a handful of memecoins in the state. Per the new update, three memecoins, FLOKI, TURBO, and GIGA, are having trading halted simultaneously.

The FLOKI team explained that this move is more about regulatory issues than anything specific to their token. Still, FLOKI remains one of the most actively traded memecoins globally. Data suggests that New York accounts for only a small percentage of its overall trading volume.

Moreover, Coinbase contributes to a small percentage of FLOKI’s daily trading activity. Even if a complete removal were to occur, which FLOKI Inu insists is not the case, the impact on the token’s overall market presence would be minimal.

In addition, the project’s leadership has contacted Coinbase and legal experts to better understand the situation. If they have any new information to share, they are expected to provide further updates.

Meanwhile, the team continues to emphasize that the token is strong and that the regulatory situation in New York does not reflect the broader market.

FLOKI Price Reaction

Despite the initial concerns, FLOKI’s price has remained relatively stable. Market data shows that there has been no major sell-off following the news.

At the time of writing on Thursday morning, FLOKI price traded at $0.00006237, up by 3.62% over 24 hours. This suggests that traders and investors are not entirely worried about the news.

Some analysts believe the market has grown more resilient to regulatory news, especially when it affects only a small portion of trading activity.

Over the years, the digital asset industry has seen many such regulatory moves. Based on this, traders have learned to evaluate their impact rather than react to fear and uncertainty.

The FLOKI team also disclosed that the asset had survived market cycles that wiped out many other memecoins. It remains one of the few from previous bull runs that still hold strong, alongside DOGE and SHIB.

Key Ecosystem Upgrades and Memecoin Market Outlook

Irrespective of what is happening with Coinbase delisting, the team behind the project continues to focus on expanding its ecosystem.

As confirmed, there is a renewed commitment to building utility-driven applications that strengthen its long-term value.

Similarly, contrary to what several analysts projected after the LIBRA memecoin scandal, the broader memecoin market is in recovery mode.

Of course, other tokens still have fluctuating market values. However, the industry is gradually gaining strength. Analysts are projecting a rally for Elon Musk- (NASDAQ:TSLA)backed memecoin DOGECOIN, among others.

This is because more institutional players are taking an interest. There is also speculation of an ETF filing for these assets.

While New York’s regulations may create temporary hurdles, the overall outlook for FLOKI Inu and similar assets remains strong.