Gifto Team Mints 1.2 Billion Tokens Amidst Binance Delisting
Controversy And Alleged Rugpull as Gifto Mints 1.2 Billion Tokens Amid Binance Delisting and Investor Backlash
The Gifto Team has come under scrutiny after minting 1.2 billion new GFT tokens on November 26, 2024, shortly after Binance’s announcement to delist the token.
This move more than doubled the total GFT supply, triggering a 55% decline in its price within two days and stirring concerns about a potential rugpull.
Gifto Team Rapid Supply Surge in $GFT Tokens
Blockchain sleuth ZachXBT analyzed the newly minted tokens. He revealed that 19 wallets received them, and they deposited the tokens across seven major cryptocurrency exchanges, including Kucoin, MEXC, HTX, and Binance.
The sudden increase in $GFT tokens significantly raised market activity, with trading volume skyrocketing from $8.6 million on Tuesday to $66 million within 24 hours.
Although these deposits temporarily boosted the market cap from $11 million to $20 million, the token’s price tumbled as demand failed to match the massive influx of supply. At the time of writing, $GFT was trading at $0.0061, a massive drop from this week’s high of $0.017.
Mounting Concerns Among Investors
The timing and scale of this minting have raised serious concerns among investors and concerned parties.
Binance’s delisting announcement, which usually indicates reduced confidence in a project, coincided with Gifto’s abrupt supply increase. This has led many including Zach XBT himself to speculate this could be an attempt by the team to capitalize on liquidity and rugpull the project before further losses.
Furthermore, Gifto has yet to provide any explanation. The absence of communication from the team on social media has only fueled more speculation.
Gifto was the first project to debut on Binance’s launchpad. It was launched in 2017 as a platform for creating and sharing blockchain gifts like NFTs. Over time, it shifted its focus to Web3 wallet services, token swaps, and staking.
However, the recent delisting and the subsequent actions have cast doubt on its long-term viability. Gifto’s founder, Andy Tian, died of a sudden illness on February 6 at the age of 47 raising further questions about the intentions of the people running the token’s affair right now.
