Earlier today, we reported the announcement from BitGet exchange regarding the Floki team. The controversy surrounding the TOKENFI project is growing, causing worries among investors. In our initial announcement, we mentioned that the team rushed their launch due to the hype in the RWA field and that the venture may not deliver the expected benefits. The recent discussions have proven these concerns to be valid.
As interest in tokenization grows, the price of LINK Coin has significantly increased. Hype in such areas often leads to abnormal price movements in certain cryptocurrencies. Projects like Shiba and Floki take advantage of this hype by hastily announcing their entries into the market. Floki did just that and announced the TokenFi project, claiming significant growth potential in the RWA field.
Shortly after, BitGet exchange announced that they would delist the altcoin due to the team’s malicious intentions. In response, Floki wrote the following:
“On October 18, 2023, we submitted a DAO proposal to launch the Floki staking program and a reward token targeting a trillion-dollar industry with strong potential. Before this DAO vote, we reached out to all our exchange partners and asked them not to list TokenFi until seven days after the token’s release, as we planned to conduct a DAO vote to allow listing. Despite the intense interest in $TOKEN and prior listing requests from these exchanges, they agreed to wait for the suggested rule of seven days because it was the right thing to do.
We had discussions with several top-tier and highly reputable exchanges, and even though they were keen on listing $TOKEN and saw the excitement around it, they accepted the proposal to wait for seven days. The smallest of the exchanges we spoke with, BitGet, acted without our knowledge to announce a listing due to the excitement they witnessed around the token.
They proceeded to list a fake token. In response to their desperate action, we issued three statements within a 24-hour period, clearly stating that NO EXCHANGE has the authority to list $TOKEN. The first tweet was four days ago, a day before $TOKEN became tradable, giving them the opportunity to halt/delay the listing. Users were also warned in advance about listing a fake token.
Despite these repeated warning tweets, the excitement around $TOKEN was too strong, and some people ignored this request. BitGet’s listed fake version of the token continued to generate approximately $50 million in trading volume on their exchange within a 48-hour period.”
In summary, the Floki Coin team defends that the TOKEN listing was a breach of agreement and that investors were deceived with the fake token.
“BITGET ADMITTED THAT THEY NEEDED 1 BILLION TOKENFI TOKENS TO MEET USERS’ WITHDRAWAL NEEDS AND COVER THEIR SHORTFALLS.”
Allegedly, the exchange sold $20 million worth of fake tokens, leading to the suspension of withdrawals.
“Instead, BitGet offered to purchase the tokens they needed to fill their gaps from the TokenFi treasury at a 90% DISCOUNT from the market price during our conversation. We found this quite interesting because the problem arose from their irresponsibility and their collection of funds from users without buying the TokenFi tokens that users paid for to cover their positions.”