The Floki Protocol and Bitget Exchange Engage in Accusations of Market Manipulation
The teams behind the Floki protocol and Bitget crypto exchange have accused each other of market manipulation after the protocol’s token, TokenFi (TOKEN), was listed and delisted by Bitget. The Floki team claimed that Bitget listed the token before it was launched, referring to the Bitget listing as a “fake token,” while Bitget claimed that the Floki team was “suspected of market manipulation by maliciously controlling the initial liquidity.”
Conflicting Claims Surrounding the Listing of TokenFi
The Floki team said it submitted a proposal on October 18 to launch a staking program with a reward token that would target a trillion-dollar industry. They were also in talks with centralized exchanges to list TokenFi. However, they claim that Bitget violated their agreement by listing TOKEN before it was launched, rendering it unavailable for sale at the time. On October 26, Floki warned investors about unauthorized TOKEN listings on centralized exchanges.
TokenFi Launches with Significant Price Gains
TokenFi launched on October 28 and saw an immediate price increase to $0.005850, representing a gain of 11,574%. At present, its price has risen even further to $0.006053 per coin. The Floki team alleges that Bitget listed TOKEN without having any available for sale, resulting in an inability to process withdrawals and leaving Bitget with a $20 million liability.
Counterclaims and Resolution
Bitget responded by accusing the Floki team of market manipulation and citing significant price fluctuations in TOKEN. They also highlighted an opaque token economy and unclear vesting schedule. As a resolution, Bitget offered to buy back all the TOKEN sold to customers at the peak price before delisting, covering any losses incurred before the delisting. However, investors who purchased from Bitget will not benefit from token appreciation after delisting.
Floki Team Rejects Bitget’s Claims
The Floki team rejected Bitget’s claim regarding the initial liquidity pool, stating that they had nearly $2 million of liquidity in each of the two TOKEN pools. They provided a screenshot allegedly showing the amount available on DEXTswap.
Other Token Launch Incidents
This incident involving TokenFi is not an isolated case of token-launch issues resulting in substantial losses. The BALD token on Base experienced an 85% drop after its developer removed liquidity from the pool. Similarly, investors lost over $2.2 million in the launch of Pond0X due to a faulty transfer function.
Hot Take: Accusations and Counterclaims Highlight Challenges in Crypto Market
The accusations and counterclaims between the Floki protocol and Bitget exchange shed light on the challenges faced in the crypto market. Market manipulation allegations can damage trust and investor confidence. This incident emphasizes the importance of transparency, clear guidelines, and adherence to agreed-upon rules in token listings and exchanges. It also highlights the need for robust mechanisms to address disputes and protect investors’ interests. As the crypto industry continues to evolve, it is crucial for stakeholders to prioritize integrity and accountability to foster a healthy and sustainable market ecosystem.
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