Tuesday, March 26, 2024

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

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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 launch, the SFC talked about that the Floki Staking Program and the TokenFi Staking Program declare to supply “excessive annualized return targets of 30% to over 100%.” Nevertheless, the regulator careworn 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 belongings 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. Consequently, the monetary watchdog added the merchandise to its Suspicious Funding Merchandise Alert Listing on Friday, January 26.

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

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

Ultimately, the SFC strengthened its dedication to making sure regulatory requirements are met and defending the Hong Kong public from fraudulent schemes. 

Floki Workforce Addresses ‘Suspicious Product’ Declare

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

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

Going ahead, the Floki workforce 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 needed 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 every day timeframe | Supply: FLOKIUSDT chart on TradingView

Featured picture from Unsplash, chart from TradingView

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