Gifto (GFT) faced a huge backlash after its move to mint and launch its tokens. On November 26, Binance announced that it would be delisting the GFT/USDT trading pair on December 10, 2024. This announcement came as part of Binance’s decision to remove eight altcoin trading pairs and sent a huge shockwave through the market.
GFT Token Price Crashes After Binance’s Delisting Decision
Immediately after Binance’s delisting announcement, the price of the GFT token dropped by approximately 25%. Delisting decisions from major exchanges usually trigger panic selling due to loss of liquidity and accessibility. This leads to a serious decrease in investor confidence. After Binance’s announcement, Web3 data analysis tool Lookonchain reported that Gifto had committed a significant token dump. The blockchain analysis firm announced that the Gifto team had minted 1.2 billion GFT tokens in just eight hours and that these tokens were introduced to the market. This led to a massive 40% drop in the price of the GFT token.
“On November 26, Binance announced that it would delist GFT on December 10, 2024. The Gifto team minted 1.2 billion GFT tokens ($8.6 million) in the last 8 hours and deposited them on exchanges. This operation caused a price drop of approximately 40% for GFT,” Lookonchain said in a statement.
Gifto’s Token “Dump” and the Crypto Community’s Reaction
Gifto’s launch of its tokens and the price drop sparked a huge debate in the crypto community. Many saw this as an opportunistic strategy. A user on the X (formerly Twitter) platform criticized Gifto’s actions, saying, “Being crazy and dumping tokens on the owners… classic Web2 move. This is why we need decentralized projects that can’t do this kind of exit strategy. Stick to real DeFi.” This criticism has become a factor that has further eroded trust in Gifto.
The Broad Impact of Binance’s Delisting Decision on Other Altcoins
Binance’s decision to delisted GFT and other altcoins reflects a larger trend in the crypto space. Exchanges are constantly reviewing and removing underperforming and problematic tokens. Other tokens that will be delisted alongside Gifto include IRISnet (IRIS), SelfKey (KEY), OAX (OAX), and Ren (REN). These decisions show how dynamic listings on exchanges are and how they respond to ever-changing market conditions.
Gifto’s Price Response After Delist and Long-Term Effects
The delisting of a token from exchanges can often have serious long-term consequences beyond just short-term price declines. This can lead to a decrease in the liquidity of the token, undermining investor confidence, and creating barriers to entry for potential investors. The loss of trading volume and visibility provided by major exchanges like Binance can call into question the long-term potential of some tokens. For Gifto, both the delisting decision and the controversial token dump have created a huge uproar. Investors are finding themselves at an even greater disadvantage as prices fall and large token holders dump their positions.