Bitget, Floki Protocol Lock Horns Over Market Manipulation Allegations After TokenFi Delisting

The teams behind the Floki protocol and Bitget crypto exchange have accused each other of market manipulation after Bitget listed and subsequently delisted the protocol's token, TokenFi (TOKEN). The Floki team alleged that Bitget had listed the token before it was officially launched.

However, Bitget countered by accusing the Floki team of maliciously controlling the initial liquidity, thereby violating governance rules established by the DAO, Cointelegraph reported.

Floki Protocol Claims Market Manipulation by Bitget Exchange

According to the Floki team, they explicitly instructed centralized exchanges not to list the TOKEN until at least seven days after its launch. Failure to comply with this directive would breach the governance rules established by the DAO.

Despite this, the Bitget crypto exchange allegedly proceeded to list TOKEN before its scheduled launch, resulting in the exchange having no assets for customers to buy or process withdrawals. Consequently, Bitget faced a $20 million liability without the TOKEN assets to offset this liability.

BSC News reported that the TokenFi token was slated for launch on October 27 at 3 p.m. UTC. Coincodex data indicates it was listed with an initial price of $0.00005011 on October 28. Shortly after, the price surged to $0.005850, marking a staggering gain of 11,574%.

Bitget Alleges Market Manipulation and Raises Concerns

Bitget responded to Floki's accusations by claiming that TOKEN experienced significant price fluctuations following its listing. As a result, Bitget suspected the Floki development team of engaging in market manipulation by maliciously controlling the token's initial liquidity.

Bitget further noted that only $2,000 in initial liquidity was added to the token's pool, raising concerns about an opaque token economy and an unclear vesting schedule.

In response to the alleged market manipulation, Bitget released a statement announcing the delisting of TOKEN. They offered to buy back all the TOKEN sold to customers, promising to pay out the token's peak price before delisting, which amounts to $0.00605002 per token.

However, any losses incurred before delisting would be covered by the exchange, with investors unable to benefit from any token appreciation following the delisting.

Floki vehemently refuted Bitget's assertion that only $2,000 worth of tokens were provided in the initial liquidity pool. The Floki team claims the two TOKEN pools had nearly $2 million in liquidity.

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