ZachXBT: Binance Delists GFT, Gifto Executes RugPull
After Binance delisted GFT tokens, there were allegations that the Gifto team attempted a rug pull scam by minting $1.2 billion worth of GFT. Following Binance’s move, OKX also delisted the GFT margin trading pair and perpetual futures. The controversy arose when Binance announced the delisting, and shortly after, Gifto allegedly minted an additional 1.2 billion GFT on the Binance Smart Chain (BSC), effectively doubling the total supply. These newly minted tokens were then sent to various exchanges, including KuCoin, MEXC, HTX, Bitget, Binance, OKX, and Gate.io.
The timing of this token minting has raised concerns about compliance with exchange rules and transparency standards. Doubling the token supply can flood the market with new tokens, potentially leading to a price crash or market manipulation. This action, combined with the lack of transparent communication with users, is reminiscent of a classic rug pull technique, where project members extract value before abandoning the project.
After the news broke, users in the crypto community expressed disappointment and raised questions about the project’s legitimacy. Some users pointed out past achievements of the Gifto team, while others raised concerns about the project’s management and direction. Investors are advised to be cautious in light of these developments, as delisting, sudden token minting, and lack of transparency are red flags for potential risks in the investment.
In conclusion, the situation with Gifto raises concerns about the integrity of the project and highlights the importance of due diligence and vigilance in the cryptocurrency market. Investors should carefully evaluate risks before engaging with any project to protect their investments and avoid potential scams.
