Disputes and allegations can arise as quickly as the markets fluctuate. Recently, a contentious situation has unfolded between the Floki protocol team and crypto exchange Bitget. This dispute centers around the listing and subsequent delisting of TokenFi (TOKEN), a cryptocurrency linked to the Floki protocol.
Allegations of Market Manipulation: Floki, Bitget, TokenFi
The drama began to unfold in late October when both parties accused each other of market manipulation, sparking a flurry of social media posts and blog entries. According to the Floki team, Bitget jumped the gun by listing TOKEN before its official launch, labeling it a “fake token.” In a striking counterclaim, Bitget pointed fingers back at the Floki team, suspecting them of manipulating the market by tightly controlling TOKEN’s initial liquidity.
The seeds of this controversy were sown earlier in October when the Floki team made a proposal. This proposition, aimed at the Floki decentralized autonomous organization (DAO), sought to establish a staking program with a reward token poised to tap into a trillion-dollar industry. Although the proposal did not divulge the token’s name or its specific purpose, the Floki team asserts that they had informed several centralized exchanges about it.
The Floki protocol team outlined clear conditions for TOKEN’s listing. It stipulates a seven-day waiting period post-launch to align with DAO governance rules. According to their account, all exchanges, including Bitget, had agreed to this condition. However, the Floki team alleges that Bitget reneged on this agreement by listing TOKEN prematurely even when it wasn’t available for sale.
Raising the Alarm: A Warning to Investors
On October 26, mere days before the controversial listing, Floki issued a warning. They cautioned investors against any unauthorized TOKEN listings on centralized exchanges. Although Bitget wasn’t mentioned by name, this pre-emptive alert highlighted the tension.
The early listing of TOKEN on Bitget, as claimed by the Floki team, led to significant repercussions. Without any TOKEN in reserve to sell, Bitget faced difficulties in processing withdrawals, culminating in a staggering $20 million liability to its customers without TOKEN assets to cover it.
In an intriguing twist, Floki alleges that Bitget tried to acquire tokens from the TokenFi treasury at a substantial 90% discount to the market price, an offer the team rebuffed. This refusal, according to the Floki team, prompted Bitget’s announcement to delist TOKEN.
Bitget’s Side of the Story: Suspicions and Subsequent Actions
Bitget’s narrative presents a different perspective. They acknowledged TOKEN’s listing on October 27, 2023, but swiftly grew concerned over its significant price fluctuations. These erratic movements led them to suspect market manipulation by the Floki team. Furthermore, Bitget criticized the opaque nature of TOKEN’s economy and the unclear vesting schedule. That ultimately led to their decision to delist TOKEN.
In a concluding statement, Bitget extended an offer to repurchase all TOKEN sold to its customers. The team promises to pay out at the token’s peak price before delisting. That sum significantly exceeds its initial price.