The Floki Inu cryptocurrency team suspends staking programs in Hong Kong
The Floki Inu cryptocurrency team has decided to halt its Floki and TokenFi staking programs in Hong Kong after the local regulator labeled them as “suspicious investment products.” The team has taken steps to block users from Hong Kong from accessing the staking programs and has placed warnings on its website informing Hong Kong users that they are ineligible to join. Additionally, the team has paused its offline marketing campaign in the city. The Securities and Futures Commission (SFC) issued a warning about the Floki Staking Program and TokenFi Staking Program, both of which claim to offer high annual returns. However, the SFC stated that these products have not been authorized for offering to the Hong Kong public.
Floki team defends high-yield staking programs
In response to the concerns raised by the regulator, the Floki team stands by its high-yield staking programs. They argue that the decision to single out these programs was based on their high APY as mentioned in social media posts and influenced by market forces. The team highlights that their staking programs can yield high returns because they were not funded by venture capital firms or large presales, which would require allocating significant portions of the supply to sponsors. Instead, most of the token supply was given to users who staked Floki. The team also explains that user rewards are subject to the market price of TOKEN, the utility token of Floki’s sister project TokenFi.
No confusion about how the staking program works
The Floki team asserts that there is no confusion among users regarding how the staking program operates. They emphasize that they have no control over the staked assets, staking contracts, or rewards. The volatility in user rewards is a result of market forces beyond their control. The team clarifies that their staking program rewards users with TOKEN instead of minting new supplies. Despite the SFC’s warning, the Floki team maintains its position on the legitimacy and functionality of their staking programs.
Hot Take: Floki Inu suspends staking programs in Hong Kong following regulatory concerns
The Floki Inu cryptocurrency team has decided to suspend its Floki and TokenFi staking programs in Hong Kong after the local regulator listed them as “suspicious investment products.” The team has taken measures to block access to these programs for users in Hong Kong and has placed warnings on its website to inform them of their ineligibility. The Securities and Futures Commission raised concerns about these staking programs, stating that they have not been authorized for offering to the Hong Kong public. However, the Floki team defends their high-yield staking programs, attributing the high returns to factors such as the absence of venture capital funding and the reliance on market forces. They emphasize that there is no confusion among users regarding how the staking program works and that they have no control over assets, contracts, or rewards.
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