In the dynamic world of cryptocurrency, the teams behind the Floki protocol and Bitget crypto exchange have found themselves embroiled in a whirlpool of accusations, each pointing fingers at the other for market manipulation. This high-stakes drama unfolded after the listing and subsequent delisting of the protocol’s token, TokenFi (TOKEN), on Bitget’s platform1.
The crux of the discord lies in the timing of TOKEN’s listing on Bitget. According to the Floki team, Bitget jumped the gun by listing the token before its official launch, terming the listing as a “fake token.” On the flip side, Bitget retorted with accusations towards the Floki team, suspecting them of “maliciously controlling the initial liquidity” to manipulate the market2.
The tale spun by the Floki team suggests a narrative of due diligence and adherence to protocol. They mentioned having submitted a proposal on October 18 to the Floki decentralized autonomous organization (DAO) to unveil a staking program with a reward token aimed at a trillion-dollar industry. Moreover, they had informed centralized exchanges to hold off on listing the token until at least seven days post-launch, in adherence to the governance rules set by the DAO. They claim that all exchanges, except for Bitget, agreed to this stipulation3.
On the other hand, Bitget noted significant price fluctuations post TOKEN’s listing on October 27, 2023, which raised red flags. The exchange suspected market manipulation, attributing it to the Floki team’s control over the initial liquidity. Bitget’s statement highlighted that only $2,000 worth of initial liquidity was added to the token’s pool, a claim that was fiercely contested by the Floki team who asserted nearly $2 million of liquidity in each of the two TOKEN pools4.
The fallout led to a reactionary stance from Bitget, offering to buy back all the TOKEN sold to its customers at its peak price before delisting, thereby covering any losses incurred before the delisting. However, this gesture would not extend to benefits from any token appreciation post-delisting5.
This saga underscores the complex interplay between crypto protocols and exchanges, each operating in a rapidly evolving market landscape with its set of challenges. Amidst the back-and-forth accusations, the larger crypto community will be keenly watching how this situation unfolds, as it could set a precedent for similar disagreements in the future.
The incident brings to light the imperative need for clear communication and adherence to agreed protocols between crypto projects and exchanges to foster a conducive environment for market operations and investor confidence.