Gifto Token Supply Crisis Sparks Concerns

Gifto’s Token Supply Crisis: Allegations of Secret Minting Spark Concerns

Gifto, a blockchain protocol focused on digital gifting and content monetization, has found itself at the center of a controversy surrounding its token supply. Allegations have surfaced that the project’s team secretly minted 1.2 billion tokens, doubling the supply just a day after Binance announced its plan to delist GFT.

Following the announcement, the price of Gifto (GFT) plummeted 35% on November 28, 2024, as market dynamics shifted abruptly. The sudden move has raised concerns over Gifto’s transparency and the project’s overall legitimacy.

The Controversial Move

A few hours after Binance announced its plan to delist GFT on November 26, 2024, the Gifto team silently minted another 1.2 billion GFT tokens on the BNB Chain (formerly Binance Smart Chain). This move more than doubled the total supply, sparking widespread concern among investors and the cryptocurrency community.

The newly minted tokens were then deposited on multiple exchanges, including KuCoin, OKX, Gate.io, and Binance itself, as well as MEXC, HTX, and Bitget. The sudden influx of new tokens has raised questions about the project’s leadership and commitment to its original vision.

Background and Context

Gifto was founded in 2017 by Andy Tian, with the goal of creating a blockchain protocol focused on digital gifting and content monetization. In January 2023, the decentralized cross-chain IDO platform Poolz invested $2.5 million in Gifto tokens to back its updated roadmap. However, a month later, reports emerged that Tian had passed away suddenly at the age of 47, leaving questions about leadership and the project’s future unresolved.

Key Takeaways

• The Gifto team secretly minted 1.2 billion tokens, doubling the supply just a day after Binance announced its plan to delist GFT.
• The move has raised concerns over Gifto’s transparency and the project’s overall legitimacy.
• The price of GFT plummeted 35% on November 28, 2024, as market dynamics shifted abruptly.
• The newly minted tokens have been deposited on multiple exchanges, including Binance itself.

What’s Next?

Gifto has yet to issue a public statement, with its most recent X post dated November 24, two days before Binance announced GFT’s delisting. As the situation continues to unfold, investors and the cryptocurrency community will be watching closely to see how the project responds to these allegations.

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