- $10 Million Deficit: Bitget Global faces a staggering $10 million financial shortfall after mistakenly listing a counterfeit version of Floki Inu’s TokenFi (TOKEN).
- Community Backlash: The crypto community, including Binance CEO Changpeng Zhao, criticizes Bitget Global for its negligence and the decision to list the fake TOKEN despite warnings from Floki Inu’s team.
Bitget Global, a platform dealing in crypto derivatives, has recently been struck by a financial catastrophe, as it grapples with a $10 million deficit. This dire situation is the result of the platform’s decision to list a fake version of Floki Inu’s TokenFi (TOKEN), despite having received explicit requests from the Floki Inu team to delay the listing.
Announcement on The Delisting of TokenFi (TOKEN) and Buyback Plan
Full details below:https://t.co/gMsQwasQ5p
— Bitget (@bitgetglobal) October 31, 2023
Ignoring Warnings: A Costly Mistake
Bitget Global’s hasty actions led to the listing of the fraudulent TOKEN, creating an environment ripe for potential price manipulation and liquidity issues. Floki Inu was quick to respond, clarifying that Bitget had listed a counterfeit token and ignored their pleas to wait for a week before proceeding with the listing.
This series of unfortunate events has left Bitget scrambling to address a $10 million hole in its finances. The exchange, having listed the counterfeit TOKEN before it was officially tradable, now faces millions of dollars in trades without having the requisite assets to facilitate user withdrawals.
The Floki Inu team has been vocal about the sequence of events that led to Bitget’s listing of the fake token and the subsequent financial turmoil. In a tweet, they laid bare the details, emphasizing the gravity of the situation. The exchange, having initially criticized Floki’s TOKEN treasury and vesting schedule, now finds itself in a precarious position.
SETTING THE RECORDS STRAIGHT ABOUT THE UNAUTHORIZED BITGET $TOKEN LISTING
On October 18, 2023, we put up a DAO proposal to launch the Floki staking program and a reward token that will target a trillion-dollar industry with strong potential. While we didn’t mention it in the DAO… pic.twitter.com/JGnlKmR0lo
— FLOKI (@RealFlokiInu) October 31, 2023
Bitget’s Uphill Battle and Industry Repercussions
To recover from this substantial loss, Bitget requires access to 10% of TokenFi’s total supply. However, the majority of TOKEN is locked in Floki’s staking pool, resulting in a severe liquidity crunch. The challenge is further compounded by the fact that Bitget may not be able to purchase an equivalent volume of TOKEN on other cryptocurrency exchanges.
The crypto industry is closely watching as Bitget navigates this financial crisis. Binance CEO Changpeng Zhao has publicly condemned Bitget’s actions, stating that the exchange has
“messed with the wrong community”
and highlighting the plight of FLOKI and TOKEN holders. This incident serves as a stark reminder of the importance of due diligence and the potential consequences of neglecting it in the fast-paced world of cryptocurrency.