Binance, a prominent crypto exchange, recently announced a strategy to delist the crypto token Gifto ($GFT). As per Lookonchain, a well-known on-chain analytics provider, the news of $GFT’s delisting from Binance because of the controversy regarding the token minting has shocked the entire crypto community. The analytics platform took to social media to disclose the details of this development.
On Nov 26, #Binance announced it would delist $GFT on Dec 10, 2024.The #Gifto team minted 1.2B $GFT($8.6M) in the past 8 hours and deposited it into exchanges.#Gifto may have dumped these tokens onto the market, and the price of $GFT has dropped by ~40%.… pic.twitter.com/ZFfbi8Llc8
— Lookonchain (@lookonchain) November 28, 2024
Gifto’s Controversial Minting Pushes Binance to Delist the Token, Raising Concerns about Its Future
Lookonchain pointed out that Binance’s move to delist the $GFT token has raised concerns around the market. After the delisting news, Gifto team made abrupt controversial move to mint and dump huge amount of coins which is making the coin fall more. They reportedly minted up to 1.2B $GFT tokens in the recent hours. These tokens account for a huge figure of $8.6M. Such a large $GFT issuance targeted the exchanges, igniting apprehensions about a wide market sell-off.
The respective dump has paralleled a sheer plunge in the market value of the $GFT token. It has reportedly dropped by almost 40% within just a few hours. The token may keep dropping till the final delisting date, 10th of Decemeber.
On the other hand, Binance frequently conducts reviews on the projects that it has listed. In this respect, it guarantees significant standards for community engagement, development activity, and security. Projects facing failure in meeting the respective standards have a risk of delisting. Although Binance has not revealed the particular reasons for the delisting, this often occurs due to apprehensions about a project’s tokenomics, community trust, or financial stability.
According to Lookonchain, this development is considerably alarming as such broad-scale mint and dump moves can minimize trust, leading to damage in its long-term development. The dramatic downfall of the token signifies the hazards concerning the projects lacking clear governance or unexplained tokenomic changes. As a result of this, some traders have also quit $GFT positions, further exacerbating the price dip.
The Move Might Lead Investors to Look for Other Options for Recovery
The $GFT minting controversy and its delisting have triggered several questions about the token’s future viability. The outcomes like the price decline and the lack of trust in the token might push the investors to leave $GFT. Hence, they might pursue other options for the recovery of their investment losses. This scenario highlights the significance of the careful decisions by the investors.
