$10 Million GFT Floods Market
Gifto recently faced backlash after minting GFT tokens and putting them on the market. On November 26, Binance announced that it would delist the GFT/USDT trading pair on December 10, 2024.
The delisting is part of Binance’s wider decision to remove eight altcoin spot trading pairs, which has sent shockwaves through the market.
Gifto’s controversial GFT token dump
When Binance announced its delisting on Tuesday, there were immediate and severe consequences. This can only be attributed to a sharp drop in investor confidence GFT token price fell by approximately 25%. Expected to be delisted from major exchanges Binance Panic selling often results as asset liquidity and accessibility decline.
On Thursday, Web3 data analysis tool Lookonchain added fuel to the fire by suggesting that Gifto was involved in a major token dump. According to the blockchain analytics company, the Gifto team minted 1.2 billion GFT tokens worth approximately $8.6 million in 8 hours. The tokens were then deposited into the exchange, at which point the market price of GFT dropped an astonishing 40%.
“On November 26, Binance announced that it would delist GFT on December 10, 2024. The Gifto team minted 1.2 billion GFT ($8.6 million) in the past 8 hours and deposited it on the exchange. Gifto may have Dumping these tokens onto the market, the price of GFT has fallen by approximately 40%,” Lookonchain said. disclose.
The timing of this “mint and dump” operation raises concerns. Many in the crypto community view this as an opportunistic exit strategy that further erodes trust in the token. One user on X (formerly Twitter) criticized Gifto’s actions.
“Delisting and dumping tokens on holders…classic web2 move. This is why we need decentralized projects that can’t pull this type of exit. Keep it real Decentralized Finance,”user famous.
The wider impact of Binance’s delisting
Binance’s decision to delist GFT and seven other altcoins reflects a growing trend in the cryptocurrency space. Exchanges constantly evaluate and remove underperforming or questionable coins. Assets delisted along with Gifto include IRISnet (IRIS), SelfKey (KEY), OAX (OAX) and Ren (REN).
Delisting often has far-reaching consequences for the affected tokens. In addition to immediate price drops, they face reduced liquidity, lower market confidence and barriers to entry for potential investors. In some cases, the long-term viability of a coin is called into question as it loses the visibility and trading volume provided by exchanges like Binance.
For Gifto, the delisting and controversial token dump combined to create a perfect storm. It plunges communities into chaos. Retail investors are often the last to react, finding themselves at a disadvantage as prices plummet and large token holders dump their positions.
The unfolding Gifto saga highlights critical vulnerabilities in the crypto ecosystem. Centralized control over token minting and distribution could lead to such events. When trust is broken, retail investors will bear the brunt of losses due to poor decision-making.
The incident also serves as a warning about the risks of holding tokens that are overly reliant on centralized exchanges. With the rise of decentralized finance (Decentralized Finance) and Decentralized exchange (Decentralized exchange), there is growing momentum for more transparent and resilient alternatives. Currently, GFT holders face an uncertain future, with December 10th being a critical date.
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