Meme coin Floki Inu has blocked Hong Kong users from accessing its Floki and TokenFi staking programs after local regulators labeled it a “suspicious investment product.”
In a blog post, the Floki Inu team announced that it has taken “practical steps” to block Hong Kong users from participating in the staking program and to display “clear warnings” on the Floki and TokenFi staking websites used by Hong Kong users. You cannot participate in the program.
The move comes after Hong Kong’s Securities and Futures Commission (SFC) issued a warning on January 26, saying Floki and TokenFi staking programs constitute “dubious investment products” and cited “high return targets of 30% to over 100% per annum.” This came out later. ”
The SFC added that neither staking product has been approved by regulators and that Floki was unable to satisfactorily demonstrate how it could achieve the staking program’s high annual return targets.
The Floki team responded that the reason the staking program’s APY is high is because the project did not raise VC funding or conduct a pre-sale, allocating the majority of the TokenFi token supply to token stakers. The team added that due to “market forces” beyond their control, TokenFi’s price rose “significantly” from its market capitalization at launch.
“We don’t believe there is any confusion among users about how the staking program works,” the Floki team said, adding that Floki and TokenFi’s staking program is “fully decentralized.”
This news does not appear to have had a negative impact on the token price. The Shiba Inu-themed meme coin is trading little changed, up 1.7% on the day, while TokenFi’s TOKEN is up 5% on the day.
Edited by Stacy Elliott.
