Gifto mints additional GFT tokens just before Binance delisting

Gifto, a largely forgotten metaverse project, minted additional GFT tokens just as it was being delisted from Binance. GFT tokens flowed out of the team’s wallets into exchanges, as noted by on-chain researcher ZachXBT.

The Gifto metaverse project recently had its tokens de-listed from Binance, first announced on November 26. The GFT tokens are a part of Binance’s latest batch of delisted assets, a common occurrence as once-promising projects show lower activity and demand. 

GFT will stop trading from December 10, along with IRIS, KEY, OAX, and REN. Binance cited its industry standards for the decision to remove the tokens. GFT has been drifting sideways for months, with no signs of rallying, and slow project activity. 

GFT in Binance wallets may be returned either after conversion into stablecoins, or released for withdrawals after January 12, 2025. A delisting from Binance usually follows a preview of the project on multiple points. In addition to trading volumes, Binance reviews project on development ability, team responsiveness and communication, as well as security threats or signs that the project is not fulfilling its promises.

Gifto team minted additional tokens

Before the delisting of the GFT/USDT pair, the project traded with more than $72M daily volumes. More than 37% of all trades were on Binance, suggesting GFT may lose a big part of its liquidity. 

Along with Binance, Bybit also delisted its GFT perpetual futures contract, with trading until December 2. 

Under those conditions, on-chain data discovered by investigator ZachXBT showed the team doubled the supply of GFT in circulation. The team minted 1.2B GFT tokens, available on BNB Smart Chain, diluting the remaining GFT value. 

After the mint was discovered, GFT unraveled further, sliding from $0.012 to $0.006. The selling may have originated in one of several exchanges, as the new GFT tokens were sent back to Binance, as well as to smaller markets MEXC, KuCoin, Bitget, HTX, OKX, and Gate.

GFT tokens, are held by only 4,854 wallets, after the swap from the original GTO token created earlier. The biggest holders are still exchanges, as the team was quick to make deposits and prepare for selling. 

Just days before the delisting announcement, the Gifto team sent out bullish messages, despite their token being stagnant for years. 

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Here we go again !

— Gifto (@GiftoMetaverse) November 24, 2024

The Gifto followers remained skeptical that the project would return, as it failed to spark enough appeal for Web3 ownership and NFT gifts. The community is now calling out the team as potentially performing a fraud by minting additional tokens. 

The immediate result of minting Gifto was that GFT increased its market capitalization briefly. The token is listed on relatively illiquid exchanges, having 45% of its volume on Gate.IO. This also means GFT can go through a short-term pump, attracting the attention of risky traders and bots. 

At the current price range, GFT has two possible scenarios – either remain completely forgotten due to reputational damage, or rally irrationally. At this price range, GFT may see some buying, expecting a recovery rally.

Gifto was a former Binance Launchpad project

Before losing most of its value, Gifto had an almost perfect launch as a new Web3 startup. The Gifto project was one of the first Binance Launchpad selections, promising a native wallet and staking services. Gifto also suffered a setback after its founder, Andy Tian, passed away in early 2023 after an illness. Tian was the founder of Asia Innovation Group, the parent company of Gifto.

GFT tokens had an initial maximum supply of 1B tokens. After the latest mint, GFT displayer a 2.24B token balance, with all assets in circulation. 

More than four years later, most of the promised functions on Gifto are not operational. There is no promised staking, or a native stablecoin. Even the Gifto store, where participants were supposed to buy top NFT collections as a gift, is not operational. 

Gifto was a well-financed project, raising $10M in an ICO event in 2020, despite the market lows. The project also gained support from Poolz Ventures and Pantera Capital, raising a total of $12.5M. 

The team now relies on social media content and bare enthusiasm to attempt a comeback. While NFT trading continues, the initial hype is gone. The GFT token may also turn more volatile, and find few investors, especially with no real utility and activity on the project.

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