Floki and TokenFi Staking Marketing Campaign Not Approved by the SFC
The team behind the Floki Inu cryptocurrency has decided to pause its Floki and TokenFi staking programs in Hong Kong after receiving a warning from the Securities and Futures Commission (SFC) listing them as “suspicious investment products.” The SFC had previously cautioned users about these programs, which claimed to offer high annual returns but lacked authorization for offering to the public in Hong Kong.
The Floki team clarified that their discussions with the SFC were centered around the exceptional performance of the staking programs. They mentioned that a marketing agency initiated the campaigns, including securing media space, but could not confirm if the campaign would continue in Hong Kong. They assured investors that they would work with Hong Kong authorities to meet all requirements.
Floki Token Staking Programs Included in Hong Kong SFC Alert List
The Floki team defended their high-yield staking programs and disagreed with the decision to single them out. They explained that the potential for high returns was due to the absence of funding from venture capital firms or large presales, which allowed most of the token supply to be given to users who staked Floki.
They highlighted a unique reward system utilizing $TOKEN from their sister project, TokenFi, as a factor contributing to the program’s performance. The team addressed concerns about volatility in user rewards, stating that rewards are subject to the market price of TOKEN and emphasized their lack of control over staked assets, contracts, or rewards.
Hot Take: Floki Inu Halts Staking Programs in Hong Kong
Floki Inu has decided to halt its Floki and TokenFi staking programs in Hong Kong following regulatory concerns raised by the Securities and Futures Commission (SFC). The SFC listed these programs as “suspicious investment products” and warned users about their unauthorized offering to the public in Hong Kong. The Floki team responded by pausing the programs, implementing measures to prevent Hong Kong users from joining, and displaying warnings on their website. They emphasized their commitment to regulatory compliance and user protection. Despite defending the high-yield staking programs, the team expressed disagreement with the decision to single them out and explained that the programs’ performance was attributed to unique factors such as a decentralized allocation strategy and absence of venture capital funding.
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