The delisting of Gifto by Binance has triggered a significant increase in the supply of GFT tokens, leading to a 55% drop in price over two days.
Gifto’s Supply Surge and Price Plunge
The founders of web3 wallet Gifto minted 1.2 billion GFT tokens after Binance announced that it was delisting the asset on Tuesday. This sudden surge in supply had an immediate impact on the market, causing a 55% plunge in GFT over the past two days. The increased supply has put pressure on the price of Gifto, making it less attractive to investors.
Distribution of Newly-Minted Tokens
The newly-minted tokens were then sent to several exchanges, leading to an increase in trading volume from $8.6 million on Tuesday to $66 million in the past 24-hours. Analysis by ZachXBT shows that the tokens were distributed to 19 wallets across seven exchanges. This distribution of tokens has contributed to the increased trading activity and has provided investors with more opportunities to buy or sell GFT.
Market Cap Fluctuations
Due to the rapid increase in supply, the project’s market cap momentarily increased from $11 million to $20 million before tumbling back to $16 million as the price of GFT continued to fall, according to CoinMarketCap. This fluctuation in market capitalization is a clear indication that the delisting by Binance has had a significant impact on the supply and demand dynamics of Gifto.
Gifto’s Social Media Channels and Team Response
Gifto’s social media channels have remained silent since the delisting, and the team did not immediately respond to CoinDesk’s request for comment. This lack of communication from the project’s team has raised concerns among investors about the future prospects of Gifto.
Conclusion
The delisting of Gifto by Binance has led to a significant increase in supply, causing a 55% drop in price over two days. The distribution of newly-minted tokens across several exchanges has contributed to increased trading activity, but the market cap fluctuations suggest that the project’s future prospects are uncertain. The lack of communication from Gifto’s team has raised concerns among investors, and it remains to be seen how the project will recover from this setback.