The teams behind crypto exchange Bitget and Web3 protocol Floki have accused each other of market manipulation and misleading investors. The dispute arose after Bitget listed and delisted the Floki protocol’s token, TokenFi (TOKEN). The Floki team claimed that Bitget listed the token before it was launched, while Bitget accused the Floki team of market manipulation.
According to the Floki team, they submitted a proposal to launch a staking program with a reward token to the Floki decentralized autonomous organization (DAO). They were in talks with centralized exchanges to list TokenFi, but did not reveal the token’s name in the proposal. The team claims that they informed exchanges not to list the token until seven days after its launch, but Bitget violated this agreement and listed TOKEN before it was available for sale.
Floki warned investors that any current TOKEN listings on centralized exchanges were unauthorized. The token was scheduled to launch on October 27 and was listed at an initial price of $0.00005011. Its price rose significantly after launch.
Floki claims that Bitget listed TOKEN without having any of it to sell, resulting in an inability to process withdrawals and a $20 million liability to customers. Bitget allegedly attempted to buy tokens from the TokenFi treasury at a discount, which was refused by the Floki team. Bitget then released a “delisting” statement in response.
Bitget claims that TOKEN had significant price fluctuations after listing, suspecting market manipulation by the development team. They also discovered an unclear token economy and vesting schedule, leading to the decision to delist TOKEN. Bitget offered to buy back all the TOKEN sold to customers at its peak price before delisting.
The Floki team rejected Bitget’s claim about initial liquidity, stating they provided nearly $2 million of liquidity in each of the two TOKEN pools. However, Cointelegraph could not verify the initial liquidity by publication time.
Summary:
– Bitget and Floki teams accuse each other of market manipulation and misleading investors.
– Bitget listed and delisted Floki’s token, TokenFi (TOKEN).
– Floki claims Bitget listed TOKEN before it was launched, violating an agreement.
– Floki warned investors about unauthorized TOKEN listings on centralized exchanges.
– TOKEN’s price rose significantly after launch.
– Bitget claims TOKEN had significant price fluctuations and an unclear token economy and vesting schedule.
– Bitget offered to buy back TOKEN at its peak price before delisting.
– Floki team disputes Bitget’s claim about initial liquidity.