Leading meme coin Shiba Inu rival Floki Inu (FLOKI) is struggling with regulatory issues raised by the Hong Kong Securities and Futures Commission.
The regulator has issued a public alert warning against two investment products associated with Floki Inu (Floki Staking Program and TokenFi Staking Program).
The official warning issued by the SFC included claims that these products offer staking services and provide annual returns ranging from 30% to 100%. With this; meme coin cautioned that none of these products have been authorized for public sale in Hong Kong, moreover, about the sustainability and realism of achieving such high returns.
In addition to the review, the China Securities Regulatory Commission warned investors about virtual asset “hostage” arrangements that could be unauthorized collective investment schemes that carry significant risks. Investors participating in such schemes may receive limited or no protection under the Securities and Futures Regulations and may expose their entire investment to risk.
Koinfinans.com As we reported, SFC emphasized that Floki Inu products exhibit characteristics of a collective investment plan. He reiterated his determination to take appropriate measures against any illegal behavior in this context. The regulator stated that violations, particularly those related to encouraging interest in collective investment schemes without appropriate licensing, are subject to legal consequences.
This unexpected regulatory move raises questions about the future course of Floki Inu and the broader cryptocurrency market, as authorities intensify efforts to protect investors from “too good to be true” investment products.