Gifto Mints and Dumps $8.6 Million Worth of Tokens After Binance Delisting

Gifto, a blockchain-based gifting platform, has come under severe scrutiny on social media following its move to mint and dump 1.2 billion GFT tokens, worth approximately $8.6 million, after Binance announced that it would delist the token.

On November 29th, Binance announced that it had suspended GFT token deposits on the platform and would delist it entirely by December 3rd, citing potential security issues with the GFT smart contract.

“To protect users, deposits for Gifto (GFT) were suspended on 2024-11-29 due to a potential security issue involving the GFT smart contract. Binance may reopen deposits for GFT if it is deemed to be safe, but no separate announcement will be issued,” Binance said.

The announcement caused GFT’s price to fall by around 25%. The token is down 32% in the past 24 hours and 75.29% in the last week.

Aftermath of the Delisting

As expected, the Binance delisting announcement triggered a wave of panic selling among GFT holders, causing its price to fall by around 25%.

However, the real drama began when Lookonchain, a blockchain analyst, revealed that the GFT team had potentially dumped massive amounts of its own token.

In an X post, Lookonchain said that the Gifto team minted 1.2 billion GFT tokens worth $8.6 million and deposited them into various crypto exchanges, causing the token to drop by 40%.

At the time of writing, the Gifto team has not commented on the matter.