Hong Kong Financial Watchdog Cautions Against Floki, TokenFi Staking Schemes
Hong Kong Financial Watchdog Cautions Against Floki, TokenFi Staking Schemes
On Friday, Hong Kong’s securities regulator cautioned investors against “suspicious” staking schemes tied to Floki and TokenFi.
Each and every tokens all the device via the Floki ecosystem offer crypto staking.
They claim yearly returns of between 30% and 100%, the Securities and Futures Rate warned.
Each and every Floki and TokenFi’s staking merchandise hang no longer been granted authorization for public offering, the announcement acknowledged.
Additional, the merchandise’ administrator has no longer convincingly demonstrated how these high annualized returns would possibly per chance additionally most certainly be performed.
What are Floki and TokenFi?
Floki and TokenFi are key factors of the broader Floki ecosystem, which targets to give numerous utilities for the FLOKI token.
TokenFi is a multichain tokenization platform on hand on Ethereum and Binance Preferrred Chain since its open on Oct. 27, 2023.
Whereas every hang clear staking applications, they are closely linked. Below the Floki map, stakers can secure loyal of entry to a substantial part of TokenFi’s provide. Meanwhile, TokenFi stakers accomplish TOKEN rewards via a user-pleasant interface.
Floki didn’t return Cryptonews’ demand for touch upon the SFC announcement by press time.
Each and every merchandise hang been added to the SFC’s Suspicious Funding Merchandise Alert Checklist on Jan. 26.
Floki Staking Draw Alert Follows Excessive-profile Hong Kong Marketing campaign
The SFC’s announcement comes about a month after Floki’s intensive two-month marketing marketing campaign in Hong Kong.
FLOKI AND TOKENFI TO DOMINATE HONG KONG IN AGGRESSIVE 2-MONTH MARKETING CAMPAIGN
As part of a brand modern and aggressive marketing campaign to strategically device #Floki and our sister venture #TokenFi for dominance in what many imagine will be one of crypto’s most explosive bull runs yet,… pic.twitter.com/ENHJ1nqJj1
— FLOKI (@RealFlokiInu) December 12, 2023
The marketing campaign promoted Floki and TokenFi on numerous platforms in Hong Kong, including tramcars, digital metropolis bus monitors, and come upscale accommodations and device of job towers.
The regulator suggested investors to be conscious out with merchandise that promise “too-factual-to-be-accurate” returns and to cease spirited when making investment choices. It added that the agency would plot shut “appropriate actions where there would possibly be any breach of the regulation.”
Hong Kong is identified for its strict plot to crypto licensing.
The SFC has beforehand warned platforms against unregulated activities. No topic some claiming to hang utilized for licenses, compliance issues remain.
Hong Kong launched a licensing program in early 2023 and lifted its crypto buying and selling ban, aiming to turned into a crypto hub.
Source : cryptonews.com
