Hong Kong Regulator Flags Floki Protocol’s Staking Products As ‘Suspicious’

The Hong Kong Securities and Futures Fee (SFC) has issued a stern warning to the general public about two staking merchandise named the “Floki Staking Program” and the “TokenFi Staking Program.” Each staking merchandise, which the monetary regulator described as “suspicious,” are affiliated with the Floki protocol.

Hong Kong’s SFC Points Warning About Staking

In a media release, the SFC talked about that the Floki Staking Program and the TokenFi Staking Program declare to supply “high annualized return targets of 30% to over 100%.” Nevertheless, the regulator burdened the truth that each cryptocurrency merchandise are but to obtain authorization in Hong Kong.

Staking is an avenue for cryptocurrency holders to earn rewards whereas supporting the operation of a blockchain. Homeowners earn extra cryptocurrency once they ship their crypto property to be locked in a staking pool for a particular time frame.

In keeping with the SFC, the Floki protocol has not been capable of satisfactorily reveal how its staking applications can obtain excessive annualized return targets. As a consequence, the monetary watchdog added the merchandise to its Suspicious Funding Products Alert Listing on Friday, January 26.

Moreover, the SFC issued a stern warning to buyers on “staking” preparations tied to digital property, as they might pose excessive threat and end in unauthorized collective funding schemes. The monetary regulator added:

Traders also needs to be cautious about funding merchandise that declare to supply “too-good-to-be-true” returns and keep vigilant when making funding choices.

In the long run, the SFC bolstered its dedication to making sure regulatory requirements are met and defending the Hong Kong public from fraudulent schemes. 

Floki Crew Addresses ‘Suspicious Product’ Declare

On Saturday, January 27, the Floki group addressed the SFC’s statements on its staking merchandise in a weekly recap space on the X platform. The protocol hinted to have been having conversations with the Hong Kong regulator on the matter.

Though the group didn’t reveal a lot details about its talks with the Securities and Futures Fee, it did point out its collaboration with a advertising company to start out promotions of the staking merchandise. The protocol claims it believed it had acquired approval after the advertising company secured media area.

Going ahead, the Floki group famous that it couldn’t confirm on whether or not the advertising marketing campaign for the Floki Staking Program and the TokenFi Staking Program will proceed in Hong Kong. Nevertheless, the protocol promised buyers that it will guarantee to satisfy all mandatory provisions with the regulatory authority. 

As of this writing, the Floki Inu token is valued at $0.00002922, reflecting a 1.1% value bounce prior to now day.

Floki value hovers round $0.00003 on the day by day timeframe | Supply: FLOKIUSDT chart on TradingView

Featured picture from Unsplash, chart from TradingView

DailyBlockchain.News Admin

Our Mission is to bridge the knowledge gap and foster an informed blockchain community by presenting clear, concise, and reliable information every single day. Join us on this exciting journey into the future of finance, technology, and beyond. Whether you’re a blockchain novice or an enthusiast, is here for you.
Back to top button