Gifto has faced serious allegations regarding the alleged secret minting of tokens, leading to a market price collapse.
Allegations of Secret Token Minting
Concerns over Gifto’s transparency intensified this week as market dynamics shifted abruptly due to a controversial move by the project’s team. The price of Gifto (GFT) plunged 35% on Thursday, Nov. 28, following allegations that the token supply was abruptly doubled only a day after Binance announced GFT’s delisting. Blockchain investigator ZachXBT revealed that the Gifto team quietly minted 1.2 billion new GFT tokens on the BNB Chain, resulting in the total supply rising to over 2.2 billion. These newly minted tokens were subsequently deposited across multiple exchanges, including KuCoin, OKX, Gate.io, and Binance.
Market Reaction and Consequences
As of press time, Gifto had not issued any public statements, with its latest post on its official X account dated Nov. 24, two days before Binance announced GFT’s delisting. Binance stated in a press release that GFT among other tokens would be delisted by Dec. 10 due to concerns over development activity, liquidity, and project commitment.
Project History and Previous News
Founded in 2017 by Andy Tian, Gifto is 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 support its updated roadmap. A month later, reports emerged that Tian had died suddenly, but no official comments were issued by the project, leaving questions regarding its future unaddressed.
The allegations against Gifto for secretly increasing token supply create uncertainty about the project's future and raise concerns among market participants.
