Floki limited Hong Kong shares after the Securities Commission’s warning
Hong Kong's Securities and Futures Commission (SFC) has warned users against getting into the dog-themed memecoin project Floki, describing it as “dubious investment products”.
On January 26, the SFC warned consumers about the jurisdiction's Floki and TokenFee staking programs, which boast annual return expectations of more than 30% and 100%, respectively. According to the SFC, investors should be wary of products that claim to offer returns that are “too good to be true”.
Floki responded to a Hong Kong Securities and Futures Commission (SFC) warning by banning Hong Kong-based users from joining its share program.
The regulator highlighted that none of the investment products are permitted in Hong Kong. The SFC added that unauthorized investment schemes were limited to no protection under the Securities and Futures Regulation (SFO) and investors could “lose all their investments”.
We recently published a response to the Hong Kong SFC's announcement of the Floki and TokenFi staking programs.
Our response highlights our thoughts on their notice, why $FLOKI and $TOKEN can have incredibly high APYs and our plans moving forward!…pic.twitter.com/YfpnnDMhfq
— FLOKI (@RealFlokiInu) January 29, 2024
In a blog post on January 29, the people behind memecoin announced that they are working with its legal advisors to clarify and resolve potential regulatory issues for the popular project.
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The group said they have taken several steps, including posting warnings on Floki and TokenFi staking websites to warn users from Hong Kong that they are not eligible to join. They wrote:
“As a responsible society, we will continue to implement these measures until the relevant regulatory issues for Hong Kong users are resolved.”
In the year The group confirmed that there is no record of Hong Kong users joining the share programs since January 29. The Floki group said they have temporarily suspended their offline trading business in Hong Kong ahead of the December 2023 launch.
Floki's team offered several explanations for SFC's primary concern about high annual percentage yield (APY). “The awards are variable and subject to market dynamics,” he highlighted. Additionally, they explained that prize values may fluctuate based on market valuation of token prizes.
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