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Floki Inu Restricts Access to Staking Programs in Hong Kong: Regulatory Concerns Addressed

In a recent development, Floki Inu has made the decision to block users in Hong Kong from accessing its staking programs. This action follows a warning from the Securities and Futures Commission of Hong Kong, which raised concerns about the staking programs being labeled as suspicious investment products due to the high annualized return targets ranging from 30% to over 100%. Despite the regulatory scrutiny, the Floki team has come forward to defend the elevated Annual Percentage Yield (APY) by explaining that it is a result of allocating the majority of TokenFi's token supply to stakers. Key Points: Floki Inu has restricted access to its staking programs for users in Hong Kong. The Securities and Futures Commission of Hong Kong issued a cautionary warning regarding the staking programs' high annualized return targets. The Floki team justified the high APY by attributing it to the allocation of the majority of TokenFi's token supply to stakers.

21Shares Launches Lido DAO ETP: Gain Exposure to Liquid Staking Provider Amid Market Surge

21Shares Launches Lido-Focused ETP Amid Liquid Staking Surge

As the market capitalization of liquid staking governance tokens continues to surge, 21Shares has launched an Exchange Traded Product (ETP) that enables investors to gain exposure to the largest liquid staking provider. The 21Shares Lido DAO ETP, with underlying asset LDO, is the first of its kind and is listed on the BX Swiss exchange. The company announced on Monday that the product will soon be available on Euronext Paris.

Liquid Staking and the Shapella Upgrade

The surge in the market capitalization of liquid staking governance tokens can be traced back to Ethereum’s Shapella upgrade. The upgrade introduced a new consensus mechanism that enabled users to stake their ETH to participate in the network’s proof-of-stake consensus. This led to the creation of several liquid staking providers, including Lido, which allows users to stake their ETH and receive stETH, a liquid representation of their staked ETH.

Liquid staking allows users to earn rewards on their staked tokens while still being able to use them for other purposes, such as trading or providing liquidity on decentralized exchanges. It eliminates the need for users to lock up their tokens for extended periods, as is the case with traditional staking.

The 21Shares Lido DAO ETP

The launch of the 21Shares Lido DAO ETP provides investors with an easier way to gain exposure to the growth of liquid staking. The product is designed to track the performance of Lido DAO, the largest liquid staking provider with a market cap of $1.6 billion, accounting for about half the market cap of all liquid staking governance tokens.

The ETP is listed on the BX Swiss exchange and will soon be available on Euronext Paris. It is the first product of its kind and provides investors with the opportunity to invest in Lido DAO without having to purchase the underlying asset, LDO.

The Future of Liquid Staking

The launch of the 21Shares Lido DAO ETP is just the latest development in the rapidly growing field of liquid staking. The ability to earn rewards on staked tokens while still being able to use them for other purposes is a game-changer for the staking industry.

As more users discover the benefits of liquid staking, the market capitalization of liquid staking governance tokens is likely to continue to rise. The 21Shares Lido DAO ETP provides investors with an exciting opportunity to gain exposure to this emerging market, and it will be interesting to see how the product performs in the coming months.

In conclusion, the launch of the 21Shares Lido DAO ETP is a significant development for the liquid staking industry. It provides investors with an easier way to gain exposure to the largest liquid staking provider and is the first product of its kind. As the market capitalization of liquid staking governance tokens continues to grow, the 21Shares Lido DAO ETP provides an exciting opportunity for investors to participate in this emerging market.

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