Floki Inu (FLOKI) Claps Back: Counters Bitget’s Claim Of Breaching 7-Day Listing Deadline
October 31 2023 - 10:00PM
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Recently, the cryptocurrency community has witnessed a heated
dispute between the protocol Floki Inu (FLOKI) and the crypto
exchange Bitget. The controversy arose following Bitget’s
listing of TokenFi (TOKEN) and subsequent accusations of market
manipulation, unauthorized listing, and insufficient solvency.
Bitget Faces Allegations Of Market Manipulation On October 27,
2023, Bitget announced the listing of TokenFi (TOKEN) in the
Innovation Zone of its Spot market. Shortly after the trading
service for TokenFi commenced, significant price fluctuations were
observed, prompting suspicions of market manipulation.
Concerns were further raised when it was discovered that TokenFi’s
project team had contributed less than $2,000 worth of tokens to
the liquidity pool of decentralized exchanges (DEXes), suggesting
potential manipulation of initial liquidity. Moreover, an
investigation of the TokenFi project uncovered additional issues,
including an “opaque” token economy and an unclear vesting
schedule. In light of these findings and to safeguard their
users, Bitget decided to delist TokenFi (TOKEN) and initiated a
buyback plan for users who held the token on its platform. Related
Reading: Ripple Partner’s Staggering XRP Holdings Revealed, Do They
Know Something You Don’t? Floki Inu, responded strongly to the
exchange’s actions, alleging that Bitget had violated their
agreement not to list TOKEN until seven days after its
launch. The meme coin protocol claimed to have had
conversations with “several Tier 1 exchanges” and respected parties
in the cryptocurrency industry. While these exchanges had expressed
interest in listing TOKEN earlier, they agreed to honor Floki Inu’s
request to wait for the stipulated period. However, Bitget,
which, according to Floki Inu, was “the smallest exchange” among
those involved, allegedly announced the listing of a fake version
of the TOKEN token just 12 minutes before the official launch on
the blockchain. Floki Inu further asserted that Bitget had engaged
in “deceptive trading practices,” manipulating TOKEN’s volume
without evidence of holding the actual tokens. The protocol
alleges that Bitget’s initial announcement had even stated that
withdrawals would open 24 hours after trading began, potentially
indicating an attempt to manipulate the token’s
price. However, the market response did not align with
Bitget’s expectations, resulting in a significant financial loss.
The situation escalated when users began reporting difficulties in
withdrawing TOKEN from Bitget’s platform, with some users allegedly
being banned for complaints. Floki Inu claimed to have
contacted Bitget to address the issue, but the response was
unsatisfactory, including a request to report liquidity issues to
Bitget’s support team. Floki Inu Alleges Bad Faith Following
subsequent discussions between Floki Inu and Bitget, it was
revealed that Bitget required up to 1 billion TokenFi tokens to
meet user withdrawal demands and cover their financial
deficit. According to Floki’s response, this amounted to
approximately 10% of TokenFi’s total supply, equivalent to around
$20 million at the time of Bidget’s statement. Furthermore, the
protocol accused Bitget of acting in “bad faith” and attempting to
resolve the situation through an over-the-counter (OTC) deal at a
deeply discounted rate. The proposed discount of 90% from the
market price raised concerns, as it was argued that Bitget should
bear the responsibility for its actions and the resulting financial
shortfall. In response to Bitget’s announcement of delisting
TokenFi and accusations of market manipulation, Floki Inu disputed
the claims made by Bitget. They asserted that Bitget had
listed the token against their explicit instructions and falsely
accused the Floki Inu team of price manipulation. Floki also
challenged Bitget to provide verifiable evidence of their TOKEN and
FLOKI holdings, expressing concerns about Bitget’s overall solvency
and risk management practices. Related Reading: Ethereum Bearish
Signal: MVRV Has Entered The “Danger” Zone Ultimately, the protocol
cautioned its users against trading or holding FLOKI on Bitget,
citing the “troubling patterns” witnessed during the TokenFi
incident. As the situation develops, the cryptocurrency community
awaits further clarification and resolution regarding the
allegations and the impact on affected users. Given these
developments, FLOKI has experienced a retracement of over 9%
in the past 24 hours and is currently trading at $0.00003250.
Nonetheless, the token has seen an impressive 85% increase over the
past fourteen days. Featured image from Shutterstock, chart
from TradingView.com
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