Cryptocurrency exchange Bitget is involved in a bitter dispute with the developers of Floki Inu over the listing and subsequent delisting of the TokenFi TOKEN memecoin.
Citing “suspected market manipulation” and “malicious control of liquidity” on decentralized exchanges (DEXs), Bitget on Tuesday announced it would be delisting TokenFi TOKEN just days after it went live. Bitget further alleged that Floki added just $2,000 in tokens to liquidity pools.
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Floki responded with a post on X, formerly Twitter, in which it says Bitget listed the token without permission and ultimately listed a fake version of TOKEN twelve minutes before it had been issued. Floki also said that Bitget facilitated tens of millions of dollars of trading volume without having a single token in their wallet. As the value of TOKEN went up, Floki claimed, Bitget created a $10 million hole as it didn’t hold the underlying asset.
“This is like opening an eight-figure short position on $TOKEN and expecting it to crash so they can buy lower to cover their hole,” the post said.
In a follow-up tweet, Floki warned users to “withdraw their tokens” from Bitget as soon as possible, citing the $10 million deficit as indicating potentially deeper liquidity concerns.
In its announcement, Bitget said will buy back tokens from users holding TOKEN on the exchange for $0.00605002 each, which is the highest closing price between Oct. 27 and Oct. 31. Given the more than doubling in the TOKEN price over the past 24 hours to $0.04129, there’s probably not going to be a ton of uptake on that offer.
Neither Bitget or Floki immediately responded to CoinDesk’s request for comment.
Edited by Stephen Alpher.