Accusations Fly Between Floki Protocol and Bitget Over Token Listing Dispute
Summary:
The developers of the Floki protocol and Bitget crypto exchange are accusing each other of market manipulation regarding the listing and subsequent delisting of Floki's TokenFi (TOKEN) on Bitget. Floki's team alleges Bitget listed their token before its official launch, violating an agreement, while Bitget suspects Floki's team to have artificially controlled initial liquidity. After initially listing TOKEN, Bitget now offers to buy back all sold TOKENs following its delisting, based on its peak price. Floki disputes Bitget's claim regarding the initial liquidity pool, alleging it was significantly higher.
A cyber squabble has erupted between the creators of the Floki protocol and Bitget, a digital currency exchange, following accusations of market manipulation related to the listing and subsequent delisting of Floki's TokenFi (TOKEN) on Bitget. These allegations come courtesy of an October 31 post on social media from team Floki and a blog post from Bitget. Floki's team insists that Bitget prematurely listed their token prior to its official launch, and they describe this hasty listing as involving a "fake token." Conversely, Bitget alleges that Floki's team may have engaged in manipulative behaviour by orchestrating an artificially controlled initial liquidity.
In an October 18 submission to the Floki decentralized autonomous organization (DAO), the Floki team proposed a reward token linked to a staking program, targeting an industry valued at a trillion dollars with bright prospects. The team mentioned that while the upcoming token's name was not included in the DAO proposal, its purpose had been made clear to several centralized exchanges.
The Floki team stipulated that centralized exchanges should refrain from listing the TOKEN for at least a week post-launch in order to comply with DAO governance rules. This agreement was allegedly breached by Bitget, which listed TOKEN ahead of its officially planned launch, making it unavailable for purchase on Bitget's platform on the day of its listing.
On October 26, Floki issued a notice to investors that any listed TOKENs on centralized exchanges were unauthorized, although Bitget was not directly named in this warning. The TOKEN was set to officially launch at 3 p.m. UTC on October 27, as announced by the team on their social media. The token showed massive growth of 11,574% in its initial price upon launch, reaching a value of $0.006053 per coin, and it has since gained more value.
The Floki developers allege that Bitget, after prematurely listing TOKEN, was unable to fulfill withdrawal requests because it didn't have any of the tokens available to be sold to its customers. The Floki team claims this issue landed Bitget in a $20 million debt to its customers, unable to offset this liability without any available TOKEN assets.
Following Bitget's attempt to buy TOKENs from the TokenFi treasury at a 90% discounted rate, which was denied by the Floki team, Bitget reportedly announced its decision to delist the token.
Accusations frame the TOKEN listing in a suspicious light, given that its significant price fluctuations occurred right after its listing on October 27. Bitget raised suspicions of manipulative behaviour by the development team regarding the initial liquidity of the TOKEN, claimed to be just $2,000. Adding to listing's tangles were reportedly inconsistencies in the token economy and a confusing vesting schedule.
Despite listing the TOKEN and facing the subsequent fallout, Bitget is now offering to buy back all of the TOKENs it sold to its customers. Investors who had bought TOKENs from Bitget before the delisting will receive its peak price, but they won't enjoy any price appreciation following the delisting.
The Floki team has disputed Bitget's allegations about the initial liquidity pool, asserting that it was closer to $2 million rather than the claimed $2,000. Liquidity details shared by Floki could not be immediately verified.
This controversial token launch involving TOKEN is reminiscent of similar problematic token launches such as BALD token and Pond0X, which have also led to multimillion-dollar losses for investors.
Published At
10/31/2023 9:24:54 PM
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