According to the SFC, the distributors of these investment programs have failed to provide sufficient evidence to support the potential high profits as advertised.
The Floki Staking Program website promises an annual staking rate for the FLOKI token, ranging from 23.78% to 78.1% depending on the blocking time (three months to four years) and selected network (Ethereum or BNB Chain). Similarly, the TokenFi Staking Program offers a comparable annual staking rate for interest. Currently, 2.5 trillion out of the total 10 trillion FLOKI tokens are locked in staking.
The SFC views the staking of digital assets as an unauthorized group investment scheme that exposes participants to risks of fund loss. Authorities emphasize that investors should exercise extreme caution when considering programs that promise such excessive returns.
Following the addition of these investment programs to the SFC’s list of questionable entities, both websites have issued announcements stating that the programs are not available to Chinese citizens residing in Hong Kong. It is worth noting that the price of Dogecoin and Floki coins had experienced a surge due to the launch of the XPayments Twitter account prior to this development.