TokenFi (TOKEN), a cryptocurrency whose purpose is “simplify the asset tokenization process”, has increased in value by 39,000% in the last four days. Anyway, that’s not the most interesting part of the story.
In a statement published by Bitget on Tuesday (31), the broker states that it will remove the project from its platform. According to the accusation, the developers of the coin manipulated the price of the TOKEN.
“Significant price fluctuations were observed after the listing of TokenFi (TOKEN)”Bitget began. “It was also discovered that the project team only added $2,000 worth of tokens to the liquidity pool on decentralized exchanges, and was suspected of market manipulation by maliciously monitoring initial liquidity.”
“In addition, further investigation of the project uncovered more potential issues, such as an opaque economic model and an unclear procurement timeline.”
Therefore, the broker has chosen to immediately suspend TokenFi (TOKEN) deposits and withdrawals.
For users who already own the cryptocurrency, Bitget offers a buyback program, where every 1 TOKEN can be exchanged for ~0.0060 USDT, 30% of the current market value.
The Floki Inu (FLOKI) team responds to complaints
Since TokenFi (TOKEN) is a project created by the memecoin team of Floki Inu (FLOKI), the developers quickly took to social media to comment on Bitget’s allegations.
In short, the team claims that Bitget not only listed TOKEN without their permission, but also listed the wrong cryptocurrency on their platform.
“Before this vote on the DAO [sobre o lançamento do projeto]we have contacted all our exchange partners and asked them NOT to list TokenFi within seven days of the cryptocurrency’s launch.”the Floki Inu team noted, stating that all brokers agreed to the terms. “Bitget, the smallest of all the exchanges we spoke to, announced a backlist as soon as we announced the details of the token launch due to the hype they saw around it.”
“In fact, not only did they go against our wishes to NOT list centralized exchanges [o TOKEN] before seven days, but they also listed a fake version of the TOKEN 12 minutes before it was officially available on the blockchain for trading.”
SETTING THE RECORDS DIRECTLY OVER THE UNAUTHORIZED BITGET $TOKEN OFFER
On October 18, 2023, we submitted a DAO proposal to launch the Floki staking program, as well as a rewards token that will target a multi-billion dollar industry with strong potential. While we didn’t mention it in the DAO… pic.twitter.com/JGnlKmR0lo
—FLOKI (@RealFlokiInu) October 31, 2023
According to the publication, this fact can be verifiable and the Bitget team had the opportunity to cancel the start of negotiations about 24 hours before the situation reached that point.
Bitget broker is accused of being insolvent
Floki continues his defense, claiming that Bitget did not even have such a cryptocurrency in its inventory as it was not tradable when it was listed on the exchange. In other words, you would be misleading your customers.
“They also DECEPTIVELY traded tens of millions of dollars in TOKEN volume without any blockchain evidence that they had a single unit of the actual token in any of their wallets to represent the purchase of these tokens by users on their exchange.”
As a possible explanation, Floki states that Bitget believed that the price of the cryptocurrency would drop the next day and could thus honor withdrawals of cryptocurrencies that did not exist. The story coincides with the buyback program offered by the broker.
“Bitget admitted it needed up to 1 billion TokenFi (TOKEN) to fulfill withdrawal requests and fill the gap”the Floki Inu team continued. “In other words, Bitget potentially facilitated purchase requests for up to $20 million worth of TOKENs from its users without having a single TOKEN in its reserves to give to those users if they decided to cash out. No wonder they refused to open the recordings.”
Finally, Floki Inu representatives claim so “genuinely curious about the state of Bitget’s overall solvency”, comparing the broker to the bankrupt FTX, which operated with fractional reserves. O Complete text can be read on Twitter.
Ultimately, the story that started with a momentous appreciation for cryptocurrency quickly turned into an accusation of market manipulation. However, the story ends with a broker accused of being insolvent.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
