Hong Kong Regulator Flags Floki Protocol’s Staking Products

Hong Kong Securities and Futures Commission (SFC) Warns Public

The Hong Kong Securities and Futures Commission (SFC) issued a strong caution regarding two staking products associated with the Floki protocol. The "Floki Staking Program" and the "TokenFi Staking Program" were labeled as "suspicious" by the financial regulator.

Staking Warning Issued by Hong Kong’s SFC

The SFC highlighted the alleged "high annualized return targets of 30% to over 100%" claimed by the Floki Staking Program and the TokenFi Staking Program. Emphasizing that these cryptocurrency products lack authorization in Hong Kong, the regulator added them to its Suspicious Investment Products Alert List on January 26.

Staking: Earning Rewards, Supporting Blockchain

Staking allows cryptocurrency holders to earn rewards by supporting blockchain operations. Users lock their assets in a staking pool for a specific duration to earn additional cryptocurrency.

Concerns Over Floki Protocol's Lack of Clarity

The SFC expressed dissatisfaction with the Floki protocol's inability to adequately demonstrate how its staking programs achieve high annualized returns. Consequently, the financial watchdog took action by adding the products to its alert list.

Investor Warning and Vigilance

The SFC issued a stern warning to investors about the associated risks with digital asset staking, cautioning against unauthorized collective investment schemes. Investors were advised to exercise caution with investment products promising "too-good-to-be-true" returns.

Commitment to Regulatory Standards

Reiterating its commitment to regulatory standards, the SFC aims to protect the Hong Kong public from fraudulent schemes.

Floki Team Responds to ‘Suspicious Product’ Claim

Team’s Perspective on SFC’s Statements

The Floki team responded to the SFC's statements in a weekly recap on the X platform, hinting at ongoing discussions with the Hong Kong regulator.

Limited Information, Marketing Collaborations

While details about the discussions with the Securities and Futures Commission were scant, the team mentioned collaborating with a marketing agency to promote the staking products, believing they had received approval after securing media space.

Uncertain Future of Marketing Campaign

The Floki team couldn't confirm whether the marketing campaign for the staking programs would continue in Hong Kong. However, it assured investors of compliance with necessary regulatory provisions.

Future Steps Uncertain

The Floki protocol's staking products face scrutiny from Hong Kong's regulatory body, prompting caution for potential investors. The uncertainty surrounding the marketing campaign's continuation adds complexity to the situation.