Crypto derivatives exchange Bitget is currently facing a $10 million deficit following the unauthorized listing and subsequent delisting of a fake token, known as TOKEN. The platform had earlier ignored a request from the Floki team to postpone the listing of TOKEN until a week after the launch of their decentralized autonomous organization (DAO) proposal and Floki staking program.
The premature listing led to trades worth millions, which created a liquidity issue as Bitget did not have sufficient assets for withdrawals. Most of TOKEN is locked in Floki’s staking pool, further complicating Bitget’s attempts to buy an equivalent volume on other exchanges to resolve the deficit.
To recover from this deficit, 10% of the TokenFi total supply is required. This situation has drawn criticism from Binance CEO Changpeng Zhao (CZ), who rebuked Bitget for its actions, stating they “messed with the wrong community,” referring to the Floki Inu project’s FLOKI and TOKEN holders.
Before this incident, Bitget had previously criticized Floki’s TOKEN treasury and vesting schedule. The ongoing situation highlights the complexities and risks associated with token listings on crypto exchanges.
