Floki Project Faces Regulatory Hurdles in Hong Kong Over Staking Programs
In today's news article, the Coinmooner team is focused on a warning from the Hong Kong Securities and Futures Commission (SFC) about staking programs offered by the Floki project. The warning was prompted by the high Annual Percentage Yields (APY) offered by these staking programs.
Floki, which originally started in 2021 as a meme-based alternative cryptocurrency, gained widespread recognition after Elon Musk tweeted about his Shiba Inu dog named "Floki." Over time, the project evolved and rebranded as "Floki," becoming a more serious player in the cryptocurrency scene.
In response to the SFC's warning, Floki issued a statement asserting the reliability of its staking programs. However, as a result of this warning, participation in staking for residents of Hong Kong was temporarily suspended along with marketing activities in the region.
The Floki team disagreed with the SFC's stance, explaining that the high returns from staking programs are due to funding features. The project, using the $TOKEN token, aims for decentralization and promises users full control over their tokens without creating new supplies. Currently, according to CoinMarketCap data, Floki ranks 166th with a trading volume of $10,282,634 in the last 24 hours.
Currently, Floki has issued clear warnings on the Floki staking and TokenFi websites, informing users from Hong Kong that they are not allowed to participate in staking. This definitely affects the project's reputation and presence in the region, which, as of the latest estimates in 2021, has a population of 7.413 million people.
Additionally, the team emphasizes in their statement two key reasons why the APY of Floki staking is significantly higher compared to other staking programs in this field. Firstly, they have rejected venture capital and pre-sales to ensure that the majority of TokenFi tokens go to Floki stakers. 54% of the tokens are allocated to Floki stakers, while 7% are allocated to TokenFi stakers. This ensures that rewards are concentrated in the hands of Floki supporters rather than venture capitalists. The total reward amount is $156,709,000 and will be available over 4 years. Secondly, staking rewards depend on the market prices of $TOKEN, which is traded on the TokenFi platform. APY may fluctuate depending on these prices and decrease as more people start staking. The initial market capitalization of $TOKEN at launch in 2023 was $500,000 fully diluted valuation (FDV).
The Coinmooner team will closely monitor the situation and promises to inform its readers of any changes and decisions regarding this situation. We also want to remind our readers of the importance of verifying information from multiple sources. In the Web3 world, it's always important to exercise caution, so we urge you, our dear readers, to always use advanced methods to protect your finances to prevent losses!
