Scandalous sale from GFT Token managers delisted by Binance

Gifto’s decision to release and quickly sell GFT tokens has garnered a huge backlash in the crypto world. On November 26, Binance announced that it would delist the GFT/USDT trading pair on December 10, 2024. This announcement had serious consequences for Gifto and its token holders, and sent a huge shock through the market. Following the delisting decision, the token lost 25% of its value, while the developers’ rapid sale deepened the crisis even further.

The most notable aspect of the scandal was that the Gifto team mined 1.2 billion GFT tokens (worth around $8.6 million) in just eight hours, transferred them to exchanges, and sold them. This move led to a 40% drop in the price of the GFT token. Blockchain analysis firm Lookonchain said that this move was far from transparent and seriously undermined investor confidence. Experts are calling this a “runaway.”

Binance’s decision to delist the GFT token comes as part of a trend where the exchange regularly evaluates underperforming or problematic tokens. Along with the GFT token, Binance has also decided to remove altcoins such as IRISnet (IRIS), SelfKey (KEY), OAX (OAX), and Ren (REN) from its platform.

Such delisting decisions usually have negative consequences for tokens. The most obvious effects of such situations include loss of liquidity, weakening of market confidence and decreasing interest of new investors. Tokens that are removed from major platforms like Binance may have difficulty sustaining their existence in the long term by losing trading volume.

This situation experienced by Gifto caused a huge division in its community and put small investors in a difficult situation. As large investors emptied their positions, retail investors suffered more losses. The Gifto example once again demonstrated that decentralized finance (DeFi) and decentralized exchanges (DEX) offer more transparent and durable structures. However, GFT token holders are currently facing an uncertain future. As the December 10th delisting date approaches, the situation may become even more complicated.