Hours after Binance announced the delisting of GFT tokens, crypto detective, ZachXBT claimed that the Gifto team attempted to carry out a rug pull scam by minting $1.2 billion worth of GFT. Following Binance’s announcement, another crypto exchange, OKX, also announced the delisting of the GFT margin trading pair and perpetual futures.
Gifto (GFT): A Rug Pull in Action? – ZachXBT
The controversy began when leading crypto exchange Binance announced the delisting of GFT tokens. Shortly after this announcement, the Gifto team allegedly minted an additional 1.2 billion GFT on the Binance Smart Chain (BSC), more than doubling the total supply. These newly minted GFT tokens were then deposited into multiple exchanges, including KuCoin, MEXC, HTX, Bitget, Binance, OKX, and Gate.io.
It was announced that Binance would delist GFT on Nov 26, 2024.
A few hours ago the Gifto team minted another 1.2B GFT on BSC which more than doubled the total supply.
GFT was then deposited to Kucoin, MEXC HTX, Bitget, Binance, OKX, & Gate.
Binance… pic.twitter.com/buvG9l88Yc
— ZachXBT (@zachxbt) November 28, 2024
The timing of this token minting raises serious concerns, as it suggests the project may no longer be adhering to exchange rules, transparency standards, or regulatory norms. This has led to increased scrutiny about the integrity of the project.
Doubling the token supply can destabilize the market by flooding it with new tokens, causing sharp price crash or market manipulation. Combined with the delisting and the lack of transparent communication with users, this move could be a classic rug pull technique, wherein project members extract value before leaving the project.
Crypto Community Reaction and Concerns
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The story doesn’t end here. After crypto sleuth ZachXBT tweeted about the alleged scam, several crypto users expressed their disappointment. The concept behind the Gifto project i.e, using blockchain technology to send gift cards as a form of remittance- was initially considered legitimate and innovative. But now the alleged crime has led to disappointment in the community.
One user, @Jeshness, pointed out, “The crazy thing is, if I recall correctly, the Gifto team was actually legit in real life and participated in a major startup accelerator back in the day.”
Another user, @shawnwlim, added, “The Gifto founder passed away last year, three days before the token was listed on Binance… I wonder who holds the keys today.”
These comments suggest that the project may have been in decline for some time, raising further doubts about its current management and direction. Alternatively, it is also possible that the team was already planning to manipulate market prices following the delisting from Binance.
Given these developments, investors are advised to stay vigilant and exercise caution. Delisting, sudden token minting, and lack of transparency are often a sign of serious risks.
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