Gifto Price Drops 35 / After Allegations of Secret Token Minting and Binance Delisting

Allegations of Secret Token Minting Shake Confidence in Gifto

The controversy began when blockchain investigator ZachXBT shared on X (formerly Twitter) that the Gifto team had secretly minted 1.2 billion GFT tokens on the BNB Chain (formerly Binance Smart Chain). This sudden increase in supply led to the token’s circulating total surpassing 2.2 billion GFT, raising alarm among investors and traders. The freshly minted tokens were swiftly deposited on several major cryptocurrency exchanges, including KuCoin, MEXC, HTX, Bitget, OKX, and even Binance itself.

The timing of this revelation was particularly damaging, as it coincided with Binance’s announcement on November 26, 2024, that it would delist Gifto (GFT) from its platform. Binance cited concerns over Gifto’s development activity, liquidity, and overall project commitment as the primary reasons for the delisting, which is set to take effect on December 10, 2024.

Following the minting of the new tokens, the Gifto price plummeted, triggering panic selling among traders. The price drop of 35% marked a significant shift in market sentiment, with many questioning the project’s future viability and transparency.

What Led to the Token Supply Surge?

The new tokens minted by Gifto’s team were added to the BNB Chain, an Ethereum-compatible blockchain developed by Binance. After minting, the tokens were quickly distributed to several exchanges, fueling concerns that this sudden supply influx would heavily dilute the value of the token, which had already been under pressure due to the delisting news.

While there has been no official statement from Gifto regarding the minting incident, many investors are frustrated by the lack of communication from the team. The most recent X post from Gifto’s official account was dated November 24, two days before the Binance delisting announcement. This silence has led to further questions about the project’s leadership, its future, and the overall health of the Gifto ecosystem.

Binance Delisting and the Fate of Gifto

The decision by Binance to delist GFT was a major blow to the project. Binance explained that it was delisting GFT and four other tokens by December 10 due to concerns over liquidity and the project’s commitment. Specifically, Binance noted that it had seen a lack of development activity from Gifto in recent months, which raised red flags about its long-term sustainability.

These issues are compounded by the mysterious circumstances surrounding the death of Andy Tian, Gifto’s founder, in February 2023. Tian, who was 47 years old at the time, had been pivotal in leading the project, but his sudden passing left the community in the dark about the future direction of Gifto. Since then, there has been little public communication from the Gifto team, adding to investor uncertainty.

Gifto’s Background and Recent Struggles

Founded in 2017 by Andy Tian, Gifto was originally designed as a blockchain protocol focused on digital gifting and content monetization. The project aimed to create a decentralized platform for gifting digital assets, which would empower content creators and influencers to monetize their work. Over the years, Gifto garnered significant attention in the blockchain space, drawing investors and partnerships, including a notable investment in January 2023 from Poolz, a decentralized cross-chain IDO platform, which injected $2.5 million into Gifto’s updated roadmap.

However, despite this early support, Gifto’s trajectory has been rocky in recent months. The platform has struggled with maintaining momentum and overcoming challenges related to liquidity, leadership transitions, and lack of development. The recent minting of tokens and the Binance delisting have only added to the growing sense of unease surrounding the project.

What’s Next for Gifto?

With the recent controversy and the Binance delisting, Gifto’s future appears uncertain. The sudden minting of tokens and the lack of transparency regarding the project’s operations have eroded trust among investors and raised doubts about the long-term viability of GFT.

The next few weeks will be crucial for Gifto, as the team will need to address the concerns raised by the community and its investors. Gifto must also find a way to regain momentum, especially considering the significant market impact from the Binance delisting and the flooding of new tokens into the market.

As it stands, Gifto is facing a critical juncture. The blockchain gifting protocol will need to provide clearer communication, demonstrate its commitment to long-term development, and restore investor confidence if it hopes to weather this storm and continue its mission within the crypto space.