Gifto Wallet Founders Mint Billion Tokens, Causing 64% Drop in GFT Token Value Following Binance Delisting
In a move aimed at fostering growth and incentivizing user participation, Gifto, a blockchain-based platform for creating, sending, and sharing digital gifts, has minted an additional 1.2 billion GFT tokens. This move has doubled the total supply of GFT tokens to 2.24 billion.
The minting of these extra tokens has led to a notable increase in the total supply of GFT, which, in turn, could potentially dilute the token’s market cap if the price per token doesn't rise proportionally. However, the move has also resulted in a significant uptick in transaction volume, as more tokens are now in circulation and being used within the platform, thereby increasing user activity and engagement metrics.
The GFT token's transaction volume has seen a substantial increase in the past day, reaching $72.34 million in the past 24 hours, up from $8.6 million on Tuesday. This surge in transaction volume has temporarily boosted the GFT token's market cap, which momentarily reached $20.65 million due to the new tokens. However, the market cap has since pulled back to approximately $13.65 million.
It's important to note that this price decline is not isolated to Gifto. Other delisted tokens, such as SelfKey $KEY and IrisNet $IRIS, are also experiencing a decline. As of this writing, the GFT token price is $0.0061, down from a Tuesday high of about $0.017.
Gifto, which was launched in 2017, has since evolved to include Web3 wallet services, token swaps, and staking among its product offerings. The platform also offers services such as NFTs in the form of e-cards, PFPs, generative art, or red envelopes.
The new GFT tokens were distributed across multiple exchanges, including Kucoin, MEXC, and HTX. However, Gifto is scheduled to be delisted by Binance on December 10, 2024.
In conclusion, while the minting of additional GFT tokens has led to a potential dilution of the market cap and a decline in the token's price, it has also boosted transaction volume and user engagement. As with any investment, it's crucial to stay informed and make decisions based on a thorough understanding of the market and the project's development.
The additional GFT tokens, minted on the blockchain platform, have been listed on various exchanges like Kucoin, MEXC, and HTX, contributing to the surge in transaction volume. This rise in transaction volume, observed in the past day, reached $72.34 million in the past 24 hours. Meanwhile, the news of the GFT token's potential dilution and price decline has been circulating in the finance and technology-focused news sectors on the web3 landscape.
