The Hong Kong Securities and Futures Commission (SFC) warned the public about the suspicious investment products Floki Staking Program and TokenFi Staking Program.
Both programs offer staking services with annual rates “from 30% to over 100%”, according to the regulator’s statement.
“The SFC has not approved the offering of these products in Hong Kong. The program administrator has failed to convincingly demonstrate how such high target returns can be achieved,” the Commission stated.
The SFC added that information about the programs is accessible to residents of the jurisdiction via the internet. The Commission has listed both as suspicious investment products.
The agency noted that cryptocurrency staking constitutes “unauthorized collective investment schemes.” Users have limited regulatory protection and may lose all their investments.
“Investors should also be cautious about products claiming to offer ‘too good to be true’ returns and remain vigilant when making investment decisions,” the SFC emphasized.
According to the Floki Staking Program website, the annual staking rate for the FLOKI token ranges from 23.78% to 78.1%, depending on the lock-up period (from three months to four years) and the network (Ethereum or BNB Chain). The TokenFi Staking Program offers slightly lower declared returns.
Both websites have posted the same warning that the products are “currently unavailable to Hong Kong citizens.”
The price of FLOKI did not react to the SFC’s statement—the coin rose by approximately 3% over the day (CoinGecko). Current quotes are more than 91% below the peak of $0.0003365 reached in November 2021.
According to the website, 2.5 trillion FLOKI out of nearly 10 trillion tokens are locked in staking.
Back in September, the meme token’s quotes surged by more than 100% following the community’s decision to burn nearly 5 trillion FLOKI.