The teams behind the Floki protocol and Bitget crypto exchange have engaged in a heated dispute surrounding the listing and delisting of their TokenFi (TOKEN), with both parties accusing each other of market manipulation.
Listing dispute sparks heated accusations
The Floki team claims that Bitget listed TOKEN before its official launch, labeling it a “fake token.” On the flip side, Bitget alleges that Floki was up to some “market manipulation” tricks with the initial liquidity.
Floki had a plan to launch a staking program through the Floki decentralized autonomous organization (DAO), targeting a massive industry, but they didn’t leak the beans on the token’s name or the purpose of the reward token. Nevertheless, they shared this classified info with several centralized exchanges. Floki insisted on a seven-day post-launch waiting period to play by the DAO rules, and, as they tell it, all exchanges agreed, except Bitget
Floki claims that Bitget acted prematurely and listed TOKEN before its actual launch, causing it untradeable. To ease the confusion, Floki advised investors that any TOKEN listings on centralized exchanges were unauthorized, without directly pointing fingers at Bitget.
TOKEN’s price surge and alleged liability
As for TOKEN, it was supposed to make its entry on October 27, 2023, with a price of $0.00005011. But it made its official debut a day later, rising like a phoenix to $0.005850, marking an astonishing 11,574% increase. As of now, it’s sitting at $0.006053 per coin.
Also Read: Tech giants Elon Musk and Mark Cuban join forces to challenge SEC in Supreme Court
Floki alleges that Bitget listed TOKEN without holding any assets to sell, causing issues with customer withdrawals and resulting in a $20 million liability to customers. Bitget purportedly attempted to buy tokens from the TokenFi treasury at a 90% discount, an offer that Floki declined. Bitget then issued a “delisting” statement, suggesting tensions between the parties.
Bitget’s side of the story is different. They claim TOKEN went on a wild rollercoaster ride with substantial price swings, and they smelled something fishy, suspecting “market manipulation” due to an insufficient initial liquidity injection, only $2,000 worth of liquidity.
Bitget’s buyback offer and dispute over initial liquidity
In response to the controversy, Bitget offered to buy back TOKEN at its peak price of $0.00605002 per token, approximately 121 times its initial price. This offer covers any potential losses before delisting, but investors who bought from Bitget will not benefit from any subsequent token appreciation.
Floki and Bitget can’t seem to agree on the initial liquidity amount. Floki insists it was nearly $2 million for each of the two TOKEN pools. But Bitget’s hang-up remains centered on the initial liquidity. They presented a screenshot displaying current liquidity, not the initial chunk, leaving us in the dark about the actual starting liquidity.
As of now, the actual initial liquidity of TOKEN remains shrouded in mystery.
This conflict isn’t the first crypto fiasco resulting in significant financial losses. The BALD token on Base saw an 85% nosedive after liquidity was pulled by its developer. Investors also took a hit of over $2.2 million during the Pond0X launch, thanks to a defective transfer function. The clash between Floki and Bitget serves as a stark reminder of the complexities and risks associated with the cryptocurrency market, leaving both investors and crypto enthusiasts on edge as the dispute unfolds.