Bitget Embroiled in Bitter $10M Dispute With Floki Over TokenFi Memecoin Listing

Floki Inu alleges that Bitget created a $10 million hole by selling tokens that it didn't hold, effectively creating a synthetic short position.

AccessTimeIconNov 1, 2023 at 3:45 p.m. UTC
Updated Jan 26, 2024 at 2:39 p.m. UTC
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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.

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.


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Oliver Knight

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.

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