Floki staking program TVL hits $27 million in four hours but users complain of CEXes creating honeypots

Floki, a decentralized autonomous organization (DAO) announced the launch of TokenFi, to be a cryptocurrency and asset tokenization platform as part of the efforts to leverage the tokenization industry. Recent reports indicate a successful launch, with the excitement around the Floki staking launch being massive so far, fueling expectations of more capital inflow to come.

Also Read: Floki Inu rips 10% higher ahead of TokenFi launch as network looks to capitalize on tokenization

Floki network records successful TokenFi launch

Floki network’s plans to capitalize on the tokenization industry have started with the best foot forward, recording a total value locked (TVL) of $27.2 million within the first four hours after launch. For the layperson, TVL points to the total amount of staked tokens.

With this record of success, the network anticipates more capital inflow over the next few weeks and months, citing massive “excitement around the Floki staking launch.” The project offered rewards in TokenFi’s ticker, TOKEN, earned by staking FLOKI tokens.

There is no limit to how many FLOKI tokens you can stake, and you can claim your rewards at any time!

The network articulated that the staked FLOKI tokens would remain locked for a minimum duration of 3 months and up to 4 years. This means that while you could claim, withdrawals would not be allowed.

Users trading wrong TOKEN on CEXes

In a recent update, the network has indicated concerns of users possibly trading the wrong tokens, noting that “any TokenFi centralized exchange (CEX) listing that happened today was not authorized by us. If you bought TOKEN on a CEX today, you are likely not trading the real TokenFi token."

In the original announcement, the Floki ecosystem noted that $TOKEN would be available for trading on decentralized exchanges Uniswap and PancakeSwap as of October 27, 15:00 UTC. They have also indicated coordinating exchange listings with key exchanges and will be announcing the timelines soon.

Investors who bought TOKEN on CEXes have been asked to withdraw their tokens immediately because chances are that they are trading the wrong tokens.

Try to withdraw these tokens to your wallet from the CEX you purchased it from. If you cannot withdraw your tokens, they do not have the real thing.

It has raised concerns about CEXes listing tokens without notifying the maker, which could pass as a flaw in the freedom in the decentralized finance (DeFi) world. Citing one user, "I bought from CoinW (900 000 token) suddenly they withdraw the tokens without even my permission and then give yme back my my USDT without even my permission also can I sue them for that? I want my token back."

However, it leaves traders at an impasse especially when they want to book profits contrary to original network guidelines.

Floki (FLOKI) price has reacted with a 15% drop in price and is exchanging hands for $0.000035 at the time of writing.

FLOKI/USDT 1-day chart