Cryptocurrency Project Floki Responds to Hong Kong SFC’s Warning
In a recent blog post, Floki addressed the warning from the Hong Kong Securities and Futures Commission (SFC) regarding its staking programs. The SFC had labeled Floki’s staking programs as “suspicious investment products” due to their high promised returns.
Floki responded to the SFC’s notice about the staking programs.
The response explains why Floki and Token can sustainably have high returns and discusses their future plans.
Floki’s response emphasized their commitment to compliance and outlined the steps they have taken to align with regulatory expectations. They have implemented warning notices on their websites and blocked Hong Kong users from the staking program. The team also halted their offline marketing campaign in the region.
The main concern of the SFC was the annual percentage yield (APY) of the staking programs, which ranged from 30% to over 100%. Floki explained that the high APY is due to the uniqueness of their staking program, where rewards are given in TOKEN, the utility token of their sister project Tokenfi. They allocate a significant portion of Tokenfi’s token supply directly to stakers.
Floki further explained that the volatility of rewards, denominated in TOKEN, is subject to market dynamics. The decentralized nature of their staking programs ensures operational continuity and user control regardless of the team’s presence.
Floki reiterated their respect for regulatory bodies and expressed willingness to engage with them. However, they disagreed if the sole basis for the SFC’s warning was the high APY influenced by market forces.
If the decision to single out the staking programs was solely due to the high APY stated in social media posts and influenced by market forces, then we respectfully disagree.
Hot Take: Floki’s Response to Regulatory Concerns
Floki has formally responded to the Hong Kong SFC’s warning, reiterating their commitment to compliance and explaining the rationale behind their staking program’s high returns. They emphasize their respect for regulatory bodies while expressing disagreement if the sole basis for the warning was the high APY influenced by market forces. Floki remains dedicated to engaging with regulators to address any concerns. The transparency of their response demonstrates their commitment to open communication and regulatory compliance in the crypto space.
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