Floki Faces Concerns from the SFC
The Hong Kong Securities and Futures Commission (SFC) has recently expressed concerns regarding two investment products related to the Floki ecosystem: the Floki Staking Program and the TokenFi Staking Program.
These programs offer staking services with enticing annual returns ranging from 30% to over 100%. However, the SFC highlighted that these products have not received the necessary authorization to be publicly sold in Hong Kong. The regulatory body has cast doubt on the ability of these programs to achieve the advertised high annual returns.
It is important to note that staking is a mechanism that allows users to contribute to the security of the blockchain while earning rewards.
The SFC Adds the Products to the ‘Suspicious Investment Products’ List
On January 26, 2024, the SFC included these programs, along with their detailed information, in its alert list for suspected investment products.
The SFC also emphasizes the risks associated with staking programs involving digital assets, which can be considered ‘unauthorized collective investment schemes’ that offer little protection to investors and can result in the total loss of investment.
Floki’s Response to the SFC’s Concerns
In response to the concerns raised by the SFC, the Floki team communicated developments regarding the SFC during a spaces session on X (formerly Twitter).
According to Floki, the only criticism made by the SFC concerns the high performance of these staking programs.
While specific details about the discussions with the SFC were not provided, Floki stated that it had collaborated with a local ‘marketing agency’ to promote these programs, believing it had obtained the necessary approval. However, the future of the marketing campaign in Hong Kong remains uncertain.
Nevertheless, the team behind Floki assured its investors that they would follow all the required procedures by the Hong Kong authorities.
