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Hong Kong Regulator Issues Warning on Suspicious Staking Schemes Linked to Floki and TokenFi

  • Securities and Futures Commission warns investors about suspicious staking schemes linked to Floki and TokenFi.
  • Floki and TokenFi claim high returns but lack authorization for public offerings, raising concerns over legitimacy.
  • Floki and TokenFi, part of the broader Floki ecosystem, offer staking programs with a close interconnection.

The Securities and Futures Commission of Hong Kong issued a warning to investors regarding suspicious staking schemes associated with Floki and TokenFi. These schemes claim to offer yearly returns ranging from 30% to 100%, but the regulator cautioned that they have not been authorized for public offering.

 Additionally, the administrator of these products has not provided convincing evidence of how such high returns can be achieved. Floki and TokenFi are integral parts of the broader Floki ecosystem, which aims to provide various utilities for the FLOKI token. 

TokenFi is a multichain tokenization platform available on Ethereum and Binance Smart Chain. While both Floki and TokenFi have their staking programs, they are closely connected, with Floki stakes gaining access to a significant portion of TokenFi's supply. 

The SFC's warning comes after Floki conducted an extensive marketing campaign in Hong Kong. The regulator advised investors to be cautious of products that promise unrealistic returns and to make informed investment decisions.

Hong Kong has a strict approach to crypto licensing, and the SFC has previously warned against unregulated activities.

Edited by Shruti Thapa