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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.

FTX's Shocking Sponsorship Deals Exposed: Riot Games and TSM Promised Millions in Esports Agreements

that he spent hours playing it. The revelation of these sponsorship deals sheds light on the extent of FTX's involvement in the esports industry and the significant financial commitments they made. It also raises questions about the impact of FTX's collapse on these sponsorship agreements and whether the promised funds were ever paid out.

FTX's Sponsorship Deals with Riot Games and TSM

According to documents presented in the Sam Bankman Fried legal trial, FTX had signed several high-value sponsorship deals, including agreements with League of Legends developer Riot Games and esports organization TSM. The details of these deals were revealed as part of the criminal trial proceedings against Sam Bankman Fried, who is facing charges of wire fraud, securities fraud, and money laundering.

Riot Games' League Championship Series (LCS) Sponsorship

One of FTX's major sponsorship deals was with Riot Games' League Championship Series (LCS), the premier esports competition for League of Legends. The documents revealed that FTX had committed to pay Riot nearly $100 million as part of a seven-year deal that would automatically renew in 2028 unless disputed by either party. The breakdown of the payments showed that Riot was to receive $4 million in 2021, $12.5 million in 2022, and approximately $12.8 million this year. The agreement also included annual recurring payments until the close of the deal.

TSM Sponsorship under FTX Trading and FTX US Labels

FTX's sponsorship deal with TSM, another prominent esports organization, was even more substantial. The documents indicated that FTX had promised TSM over $136.5 million under the "FTX Trading" label and an additional $73.5 million under the "FTX US" label. This ten-year deal, totaling $210 million, was announced in June 2021. The breakdown of the payments showed that TSM was owed about $10.8 million in 2021, $15.37 million in 2022, and another $16.6 million this year.

Unresolved Questions and Impact of FTX's Collapse

Although the details of these sponsorship deals have come to light, it remains unclear how much of the promised funds were actually paid out to Riot Games and TSM before FTX's collapse in November 2022. The documents presented in the trial did not provide information on the payment status of these deals. Decrypt has reached out to Riot Games and TSM for comment to confirm the amount of funds promised and whether they were ultimately paid before FTX's demise, but they have not yet responded.

EthDan's Take

The revelation of FTX's sponsorship deals with Riot Games and TSM highlights the significant financial commitments made by the now-defunct crypto exchange. These deals, totaling hundreds of millions of dollars, demonstrate FTX's ambitions in the esports industry and their willingness to invest heavily in partnerships with major players. However, the lack of information regarding the payment status of these deals raises questions about the impact of FTX's collapse on these sponsorship agreements. It remains to be seen how much of the promised funds were actually paid out before FTX's downfall and how the collapse of the exchange may have affected the esports organizations involved.

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