Gifto has come under fire after minting and selling nearly $10 million worth of GFT tokens, causing the price to plummet. This move, paired with Binance’s announcement to delist the GFT/USDT trading pair by December 10, 2024, triggered a significant sell-off and raised serious concerns among investors. The delisting, part of Binance’s broader removal of eight altcoin trading pairs, has fueled market panic and distrust.
The GFT token's troubles began on November 26 when Binance revealed its plans to delist the token. This announcement led to a 25% drop in GFT’s value, as investors reacted to the reduced liquidity and accessibility. Delistings from major exchanges often result in panic selling, and GFT was no exception. However, the situation worsened when the Gifto team reportedly minted and dumped 1.2 billion new tokens, worth $8.6 million, into the market just days later.
According to Web3 analytics platform Lookonchain, Gifto minted the tokens over an eight-hour period and deposited them into exchanges. This move coincided with an additional 40% crash in GFT’s market value. Many in the crypto community have criticized this as a blatant disregard for investors, accusing Gifto of using the delisting as an opportunity for an “exit strategy.” One user on X (formerly Twitter) called it a “classic Web2 move,” highlighting the risks of centralized token management and urging a shift toward decentralized systems.
Binance’s delisting decision is part of its regular review process, where underperforming or risky tokens are removed to maintain market integrity. Alongside GFT, other tokens facing removal include IRISnet (IRIS), SelfKey (KEY), OAX (OAX), and Ren (REN). For affected tokens, delisting often results in a sharp decline in value, reduced liquidity, and diminished investor confidence. These challenges raise doubts about the long-term survival of such projects, as they lose the visibility and trading volume that large exchanges like Binance provide.
Gifto’s decision to mint and dump tokens has added to the backlash, with retail investors, often the slowest to respond, bearing the brunt of the losses. Critics argue that centralized control over token supply allows for such actions, highlighting the need for decentralized alternatives. This incident serves as a cautionary tale about the risks of centralized crypto projects, where poor decision-making and lack of transparency can devastate investors.
For GFT holders, the future remains uncertain. As December 10 approaches, the combination of Binance’s delisting and Gifto’s controversial actions has left the community in turmoil. The event underscores the vulnerabilities of tokens overly reliant on centralized exchanges and raises questions about their long-term viability. Investors are now looking to decentralized finance (DeFi) and decentralized exchanges (DEXs) as more secure and transparent options.
The Gifto saga serves as a stark reminder of the importance of trust and transparency in the crypto space. For now, GFT holders are left grappling with a rapidly declining asset and an uncertain path forward. Binance’s delisting decision and Gifto’s actions have created a perfect storm, leaving many retail investors at a disadvantage.
