GFT Token Falls After Minting of 1.2B Tokens by Gifto Founders Following Binance Delisting
A Crisis of Confidence for GFT
Gifto’s decision to mint 1.2 billion additional GFT tokens has unleashed a storm of controversy, leaving the cryptocurrency community questioning the project’s integrity. The minting event, which inflated the token's total supply from its original cap of 1 billion to 2.24 billion, came just days before Binance’s planned delisting of GFT on December 10, 2024. This sudden increase in supply, paired with Binance’s announcement, ignited a sharp price decline and heightened scrutiny of Gifto’s practices.
The newly minted tokens were dispersed across 19 wallets, with transactions recorded on seven prominent exchanges, including KuCoin, MEXC, and OKX. These actions caused GFT’s price to plummet from $0.017 to a mere $0.0068, a staggering 60% drop. Despite the market capitalization momentarily rising to $20.65 million due to heightened trading activity, it quickly retracted to $15.34 million, reflecting the broader collapse of confidence.
Fallout and Unfulfilled Promises
Market observers have raised concerns over the Gifto team’s lack of transparency and the timing of their actions, with some critics accusing them of potential fraud. The dilution of token value has severely eroded investor trust, exacerbated by Gifto’s history of unmet promises. Originally envisioned as a platform for blockchain-based gifts, including NFTs and e-cards, the project has yet to deliver on features such as staking and stablecoin integration.
Founded in 2017 and celebrated as one of Binance Launchpad’s early successes, Gifto raised $12.5 million from high-profile investors like Pantera Capital. However, its trajectory shifted with the passing of founder Andy Tian in early 2023. The inactivity of the Gifto Store, alongside missed milestones, has left the project struggling to maintain relevance.
Binance’s Harsh Verdict
Binance’s announcement on November 26, 2024, cited declining user activity and unmet project standards as reasons for delisting GFT. The decision aligns GFT with other delisted tokens, such as IRIS and REN, signaling a broader crackdown on underperforming projects. While users will be able to convert GFT into stablecoins or withdraw funds starting January 12, 2025, the delisting marks a significant blow to Gifto’s credibility.
Social media sentiment has only deepened the crisis. Posts by Gifto’s team, promoting optimism shortly before Binance’s announcement, have drawn criticism as misleading and out of touch. With allegations of fraud looming and trust in the project shattered, the future for GFT appears bleak.
The token now faces a dual reality: lingering in obscurity as a tarnished asset or sporadically attracting speculative interest in low-liquidity markets. Either scenario underscores a cautionary tale for investors navigating the volatile cryptocurrency landscape.
This article has been refined and enhanced by ChatGPT.
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