On Tuesday, January 30, 2024, Floki CEO addressed concerns raised by Hong Kong’s Securities and Futures Commission (SFC) regarding the high Annual Percentage Yield (APY) of the Floki and TokenFi staking programs. The SFC had listed the programs as “suspicious” on January 26, 2024, due to a misunderstanding of how the staking rewards are generated.
In response, Floki reaffirmed its commitment to upholding all legal compliances and maintaining a strong relationship with regulatory bodies. The company stated that it has been working closely with legal counselors since December 2023 to ensure that its services align with regulatory standards, especially regarding the staking programs.
To address the SFC’s concerns, Floki has taken decisive steps specifically pertaining to Hong Kong. These include implementing clear disclaimers on the staking sites to notify Hong Kong citizens of their ineligibility for participation, actively blocking Hong Kong residents from participating, and suspending an offline marketing drive in Hong Kong that was planned for December 2023.
Floki also clarified the source of the high APY in its staking program, attributing it to two factors. First, the company chose not to raise funds through venture capitalists or presales, allowing for a larger allocation of TokenFi supply to be dedicated directly to Floki stakers. Second, the fluctuation of APY is tied to the market value of $TOKEN, the native token of Floki’s affiliate TokenFi, which can rise or fall based on market conditions.
The company emphasized that its users are fully informed of the functionality of the staking rewards and that the system operates independently of the team’s involvement, ensuring user autonomy over their assets.
Floki also expressed its respect for regulators and its willingness to engage with them to address any concerns. However, the company stated that it respectfully disagrees with the decision to single out the staking programs solely based on their high APY, which is influenced by market forces.
About TokenFi, Floki’s sister token, and an all-in-one tokenization platform, the company highlighted its commitment to revolutionizing the trillion-dollar tokenization industry by offering a user-friendly interface that requires no coding expertise.
For more information, please visit the company’s website at https://tokenfi.com and follow them on Twitter at https://twitter.com/tokenfi.
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