The Hong Kong’s Securities and Futures Commission (SFC) has issued a stern warning about two staking programs affiliated to the Floki protocol. According to the regulator, these remuneration programs promise particularly high annual returns without providing any concrete guarantees as to their actual ability to generate such gains for investors over the long term.
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SFC warnings on Floki and TokenFi staking programs
Since the JPEX platform scandal, Hong Kong’s regulators are carrying increased attention on the crypto market. This Friday, January 26, 2024, the SFC warned the public about two staking programs affiliated with Floki: the Floki Staking Program and the TokenFi Staking Program. According to the regulator, these two programs are risky and have not been approved for marketing in Hong Kong.
The SFC points out that both programs promise very high annual returns, ranging from 30 to 100%. However, no solid guarantee has been provided as to the ability of these programs to generate such returns over the long term on a sustainable basis.
Furthermore, the SFC considers that these staking products present significant risks for investors. It warns against the possibility of total loss of invested funds.
Floki’s reaction to the regulator’s accusations
Faced with these accusations, the Floki team addressed the subject during its weekly live recap on X. Floki claims to have collaborated in good faith with a marketing agency, believing they had all the necessary permissions to promote his programs in Hong Kong.
Floki has promised to cooperate with the local authorities to meet all their requirements. However, the regulator is sticking to its guns. The two programs of staking have been added to its list of suspect investment products.
Whatever the truth may be about these Floki staking programs, this warning from Hong Kong serves as a reminder, if any were needed, to be cautious when talking about easy gains.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.
