Of course, living on the ocean floor presents its own difficulties and a wide range of potential predators. The rippling, thick-skinned wrinkles area good idea, I think but rather than skin, the colouration should come from scales. Excellent protection, don'tchaknow.

Excellent start!

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A creature with the ability to change color from red to blue might be both advantageous and esthetically/politically appealing...

That one had me laughing for its appropriateness. Like the States, we're going through our own fool's parade...I mean general election; the primary parties being the Conservatives (Colour blue) and the Liberals (colour red). And once the election is over; there are always a lot of floor-crossers from the losing side to the winning side...