Gifto is facing some serious backlash after its recent decision to mint and dump GFT tokens on the market. On November 26, Binance announced it would delist the GFT/USDT trading pair on December 10, 2024. This decision is part of Binance's broader strategy to remove eight altcoin trading pairs, and it's already causing quite a stir in the market.
The reaction to Binance's announcement was quick and harsh. The price of GFT dropped by about 25%. This kind of panic selling is common when major exchanges like Binance make such announcements. Investors worry about decreased liquidity and accessibility.
To make matters worse, Lookonchain, a Web3 data analysis tool, reported that the Gifto team minted 1.2 billion GFT tokens, worth around $8.6 million, in just eight hours. They then deposited these tokens into exchanges, which coincided with a shocking 40% drop in GFT’s market price. Lookonchain stated, “On Nov 26, Binance announced it would delist GFT on Dec 10, 2024. The Gifto team minted 1.2 billion GFT ($8.6 million) 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%.”
The timing of this mint-and-dump operation has raised eyebrows. Many in the crypto community see it as an opportunistic exit strategy, which further erodes trust in the token. One user on X (formerly Twitter) criticized Gifto’s actions, saying, “Getting delisted and dumping tokens on holders… classic web2 move. This is why we need decentralized projects that can’t pull this type of exit bs. Stick to real DeFi.”
Binance’s choice to delist GFT along with seven other altcoins reflects a growing trend in the cryptocurrency space. Exchanges continuously evaluate and remove underperforming or problematic tokens. Other assets set to be delisted include IRISnet (IRIS), SelfKey (KEY), OAX (OAX), and Ren (REN).
Delistings can have serious consequences for affected tokens. Beyond immediate price drops, they often face reduced liquidity and diminished market confidence. Investors may hesitate to enter the market. In some cases, a token’s long-term viability can come into question as it loses the visibility and trading volume that major exchanges like Binance provide.
For Gifto, the combination of the delisting and the controversial token dump has created a perfect storm. Its community is left in disarray. Retail investors, who typically react last, find themselves at a disadvantage as prices plummet and large token holders sell off their positions.
This unfolding situation with Gifto highlights critical vulnerabilities in the crypto ecosystem. When centralized control over token minting and allocation exists, it can lead to events like this. When trust is undermined, it’s often the retail investors who pay the price.
This incident also serves as a cautionary tale about the risks of holding tokens that rely heavily on centralized exchanges. With the rise of decentralized finance (DeFi) and decentralized exchanges (DEXs), there is a growing push for more transparent and resilient alternatives. For now, GFT holders face an uncertain future, with December 10 approaching as a crucial date.