There’s been a heated argument in the cryptocurrency community involving Floki Inu (FLOKI) and Bitget, a crypto exchange. The dispute began when Bitget listed TokenFi (TOKEN) and then accused them of market manipulation, listing without permission, and lacking enough funds to cover transactions.
On October 27, 2023, Bitget announced that it was adding TokenFi (TOKEN) to its Spot market’s Innovation Zone. However, shortly after TokenFi started trading, there were significant price swings that raised suspicions of market manipulation.
Concerns grew when it was revealed that TokenFi’s project team had only contributed a small amount, less than $2,000 worth of tokens, to decentralized exchanges (DEXes), hinting at potential manipulation of initial liquidity.
Furthermore, an examination of the TokenFi project revealed more issues, such as a confusing token system and an unclear schedule for releasing tokens.
To protect its users, Bitget made the decision to remove TokenFi (TOKEN) from its platform and launched a plan to buy back the tokens held by users.
Floki Inu Accuses Bitget of Violating Listing Agreement
Floki Inu, a meme coin protocol, has accused Bitget, a crypto exchange, of breaking their agreement not to list TOKEN until seven days after its launch. Floki Inu stated that they had discussions with several top-tier exchanges in the cryptocurrency industry, and these exchanges agreed to wait for the specified period, despite their initial interest in listing TOKEN earlier.
However, Bitget, which Floki Inu considered the smallest exchange among those involved, reportedly announced the listing of a fake version of TOKEN just 12 minutes before the official launch on the blockchain.
Floki Inu also claimed that Bitget engaged in deceptive trading practices by manipulating TOKEN’s trading volume without evidence of holding the actual tokens. Bitget’s initial announcement even indicated that withdrawals would open 24 hours after trading started, which raised concerns about potential price manipulation. However, the market didn’t react as Bitget had expected, resulting in financial losses.
The situation worsened as users faced difficulties withdrawing TOKEN from Bitget’s platform, and some users allegedly got banned for making complaints. Floki Inu tried to address the issue with Bitget, but they found the response unsatisfactory, including a request to report liquidity issues to Bitget’s support team.
Floki Inu’s Accusations Against Bitget
Following discussions between Floki Inu and Bitget, it was revealed that Bitget needed around 1 billion TokenFi tokens to meet user withdrawal requests and cover their financial shortfall. This amounted to roughly 10% of TokenFi’s total supply, equivalent to about $20 million at the time of Bitget’s statement.
Floki Inu accused Bitget of acting in “bad faith” and trying to resolve the situation through an over-the-counter (OTC) deal at a heavily discounted rate. The proposed 90% discount from the market price raised concerns, as it was argued that Bitget should take responsibility for its actions and the resulting financial deficit.
In response to Bitget’s announcement of delisting TokenFi and allegations of market manipulation, Floki Inu disputed Bitget’s claims. They argued that Bitget had listed the token against their explicit instructions and falsely accused the Floki Inu team of manipulating prices.
Floki also challenged Bitget to provide verifiable evidence of their holdings of TOKEN and FLOKI, expressing concerns about Bitget’s financial stability and risk management practices.
Ultimately, Floki Inu cautioned its users against trading or holding FLOKI on Bitget, citing “troubling patterns” observed during the TokenFi incident. As the situation unfolds, the cryptocurrency community is eagerly awaiting further information and resolution regarding the allegations and their impact on affected users.
FLOKI’s retracement on the 4-hour chart. Source: FLOKIUSDT on TradingView.com
In light of these developments, FLOKI has retraced more than 9% in the last 24 hours, with its current trading price at $0.00003250. Despite this recent drop, the token has shown a remarkable 85% increase over the past two weeks.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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