Binance announces delisting, $GFT price plummets
Binance, the world's largest cryptocurrency exchange, recently announced that it will delist eight altcoin spot trading pairs including Gifto ($GFT) on December 10, 2024. As soon as the news came out, it immediately caused shock in the market. The price of the $GFT token quickly fell after the news was announced, down around 25%. For tokens that are delisted from major exchanges, liquidity and accessibility decrease, and investor confidence is also dampened, leading to a wave of selling.
Source: Binance Exchange The price of the $GFT token fell rapidly after the news was announced
Gifto team sells tokens en masse and makes nearly $10 million profit
What shocked the market even more was that after Binance announced its delisting, the Gifto team was accused of selling tokens in large quantities. According to data provided by blockchain analytics firm Lookonchain, the Gifto team minted 1.2 billion $GFT tokens in just 8 hours. At the time of writing, the price of $GFT was 0.01138, worth approximately US$13.65 million (approximately NT$444 million). These tokens were subsequently deposited into multiple exchanges, and at the same time, the market price of GFT plummeted by approximately 40%.
Lookonchain said on social media: "On November 26, Binance announced that it would delist $GFT on December 10. The Gifto team minted 1.2 billion $GFT and deposited it into the exchange in the past 8 hours. Gifto These tokens may have been dumped into the market, causing the price of $GFT to drop by approximately 40%.”
Source: Lookonchain Gifto team minted 1.2 billion $GFT tokens in just 8 hours
The community questions the operation and the crisis of trust intensifies
This series of operations triggered strong dissatisfaction and doubts in the cryptocurrency community. Many investors believe that the Gifto team acted like a “cash out” strategy, further eroding trust in the project. One netizen criticized on DeFi!"
The incident also highlighted critical vulnerabilities in the cryptocurrency ecosystem. When the token minting and distribution of a project are controlled by a centralized team, similar market manipulation behaviors are prone to occur, and the final victims are often ordinary retail investors. As the price of $GFT plummeted, many holders were caught in a dilemma: holding on held increased risk, while selling faced huge losses.
The background of the Taiwanese team has attracted attention and the market prospects are worrying
According to market rumors, Gifto’s team background is related to Taiwan, which has also attracted great attention from the Asian cryptocurrency community. Although there is no conclusive evidence that the team members are from Taiwan, the news has been widely circulated in the market. For Gifto, Binance’s delisting decision and this controversial token dumping undoubtedly put it at the forefront.
Binance’s delisting of $GFT and four other altcoins reflects the strict risk control measures taken by the exchange when faced with underperforming or problematic tokens. For the delisted tokens, in addition to the immediate price drop, future liquidity, market confidence and investor entry barriers will be severely affected, and their long-term viability will also face challenges.
This Gifto incident has sounded the alarm for investors, reminding everyone to carefully evaluate the transparency and centralization risks of projects when investing in cryptocurrencies. With the rise of decentralized finance (DeFi) and decentralized exchanges (DEX), the market is gradually turning to more transparent and risk-resistant alternatives. However, for GFT holders, the future is full of uncertainty, and the delisting date of December 10 has also become a critical time point.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
“Don’t be afraid of being delisted from Binance! First sell GFT to earn 13.65 million magnesium. How did this Taiwanese team do it? This article was first published in "Crypto City"
