The post Gifto’s GFT Token Dump and Binance Delisting Raise Concerns About Centralized Exchange Vulnerabilities appeared on BitcoinEthereumNews.com.

Gifto’s recent token minting and subsequent dumping have sent shockwaves through the crypto market, raising significant concerns about centralized token mechanisms. The company’s decision to mint 1.2 billion GFT tokens seems strategically timed, resulting in massive financial losses for investors. “The potential manipulation of the token market raises substantial ethical questions about Gifto’s centralized control,” remarked a COINOTAG analyst. Gifto’s token dump has triggered investor distrust and a significant market downturn, highlighting the risks of centralized crypto management. Gifto’s Controversial GFT Token Dump The immediate aftermath of Binance’s delisting announcement on Tuesday was swift and severe. In what could only be attributed to a sharp decline in investor confidence, the GFT token’s price dropped by approximately 25%. Expectedly, delistings from major exchanges like Binance often trigger panic selling as liquidity and accessibility to the asset decrease. Adding fuel to the fire, on Thursday, Web3 data analysis tool Lookonchain implicated Gifto in a significant token dump. According to the blockchain analytics firm, the Gifto team minted 1.2 billion GFT tokens, valued at roughly $8.6 million, within an eight-hour window. These tokens were then deposited into exchanges, coinciding with an alarming 40% drop in GFT’s market price. “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%,” Lookonchain revealed. The timing of this mint-and-dump operation has raised eyebrows. Many in the crypto community perceive it as an opportunistic exit strategy, further eroding trust in the token. One user on X (formerly Twitter) criticized Gifto’s actions. “Getting delisted and dumping tokens on holders… classic web2 move. This is why we need decentralized projects…

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Filed under: News - @ November 28, 2024 6:23 am