The Hong Kong Securities and Futures Commission (SFC) has issued a cautionary statement to the public regarding two investment products associated with the Floki Inu ecosystem.
The Hong Kong Securities and Futures Commission (SFC) has issued a cautionary statement to the public regarding two investment products associated with the Floki Inu ecosystem: the "Floki Staking Program" and the "TokenFi Staking Program." The SFC highlighted that these products offer staking services with promised annualized returns ranging from 30% to over 100% but lack authorization for public sale in Hong Kong.
The SFC expressed concerns that the governing body of these two products has failed to provide a convincing explanation for how they intend to achieve such high annualized return targets. In response to the SFC's warning, the Floki team addressed the issue during a live space on X (formerly Twitter).
The team emphasized that the SFC's sole complaint is that the staking programs perform exceptionally well. While unable to provide details about their discussions with the SFC, Floki clarified that it collaborated with a marketing agency to promote the staking programs. The agency secured media space, and the Floki team believed it had received approval.
However, the Floki team remained uncertain about the continuation of the marketing campaign in Hong Kong. They assured investors that they would take all necessary steps to comply with the requirements of the Hong Kong authorities.
Staking, a process that allows users to earn rewards by contributing to blockchain security, involves depositing cryptocurrency into a staking pool, similar to a savings account.
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