Today I saw Gifto (GFT) made another big news, which really made me speechless. The cause of the incident is this: Binance just announced a few days ago that it would delist GFT on December 10. Logically, the project team should have tried to restore its reputation or re-plan its development direction, but they just started to press the "additional issuance button" on the chain.
In just a few hours, 1.2 billion GFT tokens were "born" and quickly sent to exchanges such as Binance. You don't have to guess what happened next: tokens were dumped, prices plummeted, and investors were left confused. According to market data, GFT fell 36% in one day, and I feel sorry for retail investors.
What exactly did Gifto do?
Let me first briefly explain to those who haven't paid much attention to this matter. After Binance announced the delisting, the Gifto team seemed to have no constraints at all and began to recklessly issue GFT tokens on the chain. As we all know, normal project parties have control over the supply of tokens. After all, this is a core indicator related to the stability of the currency price and market trust.
But the Gifto team didn’t seem to care about the market reaction at all, and directly issued 1.2 billion tokens (worth about 8.6 million US dollars), and then quickly transferred these tokens to several mainstream exchanges. Judging from this pace, they seem to have made up their mind to “cut off the last wave and leave”.
Binance’s delisting decision: Giving time does not mean giving opportunities
Binance officially delisted GFT on December 10, leaving a buffer period, but the Gifto team took advantage of this period to stir up trouble. Binance’s delisting announcement made it clear that delisting a token is usually due to reasons such as lack of transparency, dishonesty, and poor market performance. Gifto’s operation simply covered all the “non-compliant” rules and regulations.
A community user complained: "What is Binance waiting for? Wouldn't it be better to just block the account and freeze the assets for this kind of market-crashing project?"
Retail investors who were ripped off: No one listened even though I shouted at the top of my lungs
After the incident, the victimized retail investors naturally cursed. One netizen’s comment was quite heartbreaking: “I originally thought that Binance’s project had some security, but it turned out that it was cut before it was delisted. This incident will be a lesson for me in the future.”
Some people even joked: "Gifto has really brought 'innovative ideas' to the entire industry. Will all projects that are removed from the shelves be treated in the same way in the future?"
However, some users are more practical and suggest that exchanges should impose stricter restrictions on project parties, such as:
Freeze the recharge rights of the project party: if abnormal issuance is found, the flow of funds will be directly restricted;
Emergency delisting mechanism: When obvious malicious behavior is discovered, the product will be suspended immediately;
Require transparent disclosure: For large-scale share issuances like this one, investors should at least know in advance.
A little advice for leeks
The story of Gifto once again illustrates one thing: the water in the cryptocurrency world is really deep, and many seemingly glamorous projects are actually just a sickle. If you want to survive in this market, you really have to learn how to protect yourself.
Don’t be superstitious about big projects: Although mainstream exchanges review projects, they may not be able to control the situation in time once something goes wrong;
Focus on the issuance rules: The issuance mechanism of tokens is the lifeline of every project. Don’t touch those that increase tokens randomly like Gifto.
Stop loss in time: If you see that the situation is not right, don’t fight to the end, run away when you should, and only by keeping your capital can you have the next chance.
Conclusion: The cryptocurrency world really can’t be played like this
The Gifto incident not only affected the sentiment of retail investors, but also poured cold water on the credibility of the entire industry. If such incidents happen frequently, the trust foundation of the cryptocurrency circle will collapse sooner or later.
I hope the exchange can be tougher and not wait for the project owner to be self-aware. For malicious operations like this, just block them. As investors, we must also be more vigilant and not be blinded by short-term hot spots and hype. After all, in this industry, when the wind blows, it is not the pigs that can fly, but the sickles.
Finally, I hope everyone can avoid those projects that claim to be innovative but are full of "harvest plans". It is a hard truth to carefully choose projects and protect your wallet.