Floki’s staking programs were flagged as ‘dubious investment products’ by the Hong Kong Securities and Futures Commission.
Floki Inu, a meme coin, has banned Hong Kong users from accessing its TokenFi and Floki programs. This happened after the Hong Kong Securities and Futures Commission (SFC) labeled them ‘dubious investment products.’
Floki Inu Deploy Interventions to Avert Hong Kong Participants
In a post, the Floki Inu team revealed it had implemented ‘suitable interventions’ to prevent Hong Kong users from participating in the staking program. Additionally, the team placed ‘easily noticeable cautions’ on the TokenFi and Floki websites, showing that users are barred from being part of the programs.
The move happens after a January 26 warning from the SFC that both staking programs had ‘dubious investment products.’ The warning also showed they had ‘significant annualized return targets of 30% to over 100%.
According to the Securities and Futures Commission, both staking products lacked authorization. Additionally, the regulator noted that Floki failed to prove how the staking programs’ high annualized return targets would be attained.
Floki Staking Programs Facilitate TokenFi’s Supply
According to the Floki team, the significant APY targeting the staking programs is linked to assigning most of TokenFi’s supply to token stakers, caused by the project’s failure to generate VC funds or carry out a presale.
Besides, the team claimed that ‘market dynamics’ beyond its control increased TokenFi’s price ‘considerably’ from its market capitalization during the unveiling.
The Floki team claimed it does not believe that confusion among users concerning the working of the staking programs exists. It also noted that both staking programs are ‘fully decentralized.’
This news does not seem to have harmed the tokens’ costs. In this case, TokenFi’s TOKEN is up 5%, while the Shiba Inu-themed meme coin is trading up 1.7%.
Editorial credit: Maurice NORBERT / Shutterstock.com
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