Benzinga - The creators of the meme-inspired cryptocurrency Floki (CRYPTO: FLOKI) have addressed concerns raised by Hong Kong’s Securities and Futures Commission (SFC) by making adjustments to their token staking program, which had been identified as a potentially risky investment.
What Happened: The Floki team implemented specific measures aimed at Hong Kong, including explicit warnings on both Floki and TokenFi’s staking websites, notifying Hong Kong citizens of their ineligibility to participate.
"Clear disclaimers were implemented on Floki and TokenFi staking sites to notify Hong Kong citizens of their ineligibility for participation. Precautions have been taken to actively block Hong Kong residents from participating in these staking programs," the Floki team said in a press statement.
In the release, the meme cryptocurrency team outlined the structure of their staking program’s high annualized percentage yield (APY).
See More: Dogecoin HODLERs Are Beating Shiba Inu With 57% Landing In Profits, IntoTheBlock Data Reveals
"Choosing not to initiate funds through venture capitalists or presales allowed a more extensive allocation of TokenFi supply to be dedicated directly to Floki stakers—54% to be precise—honoring Floki’s commitment to its community. This resulted in a lot more rewards for stakers which is why the APY is high. The fluctuation of APY is inherently tied to the market value of $TOKEN, which can rise or fall based on market conditions, affecting the APY accordingly," added FLOKI in the press release.
Why It Matters: The Hong Kong Securities and Futures Commission issued a public warning about the “Floki Staking Program” and the “TokenFi Staking Program” on Monday, cautioning investors about offerings promising high annual returns, ranging from 30% to over 100%.
Staking in the cryptocurrency context involves users locking coins to receive rewards while contributing to the operation and integrity of a blockchain network. This process is akin to depositing in a savings account but includes the additional function of supporting the blockchain’s security and decentralized infrastructure.
Price Action: At the time of writing, FLOKI was trading at $0.00002, up 2.10% in the last 24 hours, according to Benzinga Pro.
Read Next: Here’s How Much You Should Invest In Shiba Inu Today For A $1M Payday If SHIB Hits 1 Cent?
Photo Courtesy: Maurice NORBERT On Shutterstock.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.