Floki’s Response to SFC Concerns – Regulatory Compliance and APY Explanations

B. Ali
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Floki, the folks behind a dog-themed coin, replied to worries from Hong Kong’s Securities and Futures Commission about their staking programs. They explained the high Annual Percentage Yield (APY) and assured everyone about following rules in different places.

The article talks about how Floki is trying to sort out regulatory concerns and politely disagrees with the SFC’s main focus. It’s all about keeping things clear and straightforward.

Regulatory Compliance Measures and Dedication to Law

Floki wants everyone to know they’re sticking to the rules worldwide. After the SFC raised concerns, Floki took steps to follow the regulations, especially in Hong Kong. They put up warnings on their websites and stopped people from Hong Kong from using the staking program.

Also, they paused their marketing in the region which was supposed to happen in mid-December 2023.

The SFC was worried about Floki’s staking plans with high APY (30% to over 100%). Floki explained that their staking is special, giving TOKEN, a utility token from their sister project, Tokenfi.

The high APY is because they didn’t use regular fundraising. Instead, they gave a big chunk of Tokenfi’s tokens straight to stakers.

Floki’s reply to the SFC warning might make investors more careful about joining high-yield staking programs. It could affect trust in these projects, causing a ripple effect on the overall market.

Floki talked about how TOKEN rewards can go up and down because of market changes. They want users to know that their staking programs are decentralized, meaning they’ll keep running even if the team isn’t directly involved. This way, users can stay in control by themselves.

Respect for Regulators and Disagreement on SFC’s Focus:

Floki showed a lot of respect for regulators and promised to talk with them about their worries. But they politely disagreed with the SFC’s main focus, especially if it’s just about the high APY affected by market changes.

They think the attention on staking programs might be because of social media talking about the high APY rates, a point they respectfully disagreed with.

About B. Ali PRO INVESTOR

Live webinar speaker and derivatives (Forex, Crypto, and Indices) analyst with a broad range of skills for evaluating financial data, investment trends, technical analysis, fundamental analysis, and the best ways to strategies investment selection.  Expertise: Trading Psychology; Speculative Positioning & Market Sentiment; Technical & Fundamental Analysis.