Floki Inu price drops 15% as TokenFi hype subsides

Floki Inu (FLOKI) price bullishness is easing after a hard pump last week when the network was launching the TokenFi token in its endeavor to capitalize on the tokenization industry. Following a successful launch however, controversy sparked with users complaining of centralized exchanges creating honeypots.

Also Read: Floki staking program TVL hits $27 million in four hours but users complain of CEXes creating honeypots

FLOKI DAO accuses Bitget of fake listing

Floki Inu (FLOKI) price rallied almost 63% between October 25 and October 26, as FLOKI holders hyped the launch of TokenFi, a crypto and asset tokenization platform. Notably, the launch was part of the network’s drive toward exploring the tokenization industry, projected by some to hit a $16 trillion valuation by the end of 2030.

In the latest development, the FLOKI network has accused Bitget exchange of listing fake tokens, accusing it of “deceptively trading millions in volume.”

Based on the announcement, the FLOKI network had “reached out to all our exchange partners and asked them NOT to list TokenFi until after seven days of the token going live since we intend to put forward a DAO vote to allow the listing.”

Ironically, while the network had reached out to several tier-one exchanges for the same arrangement, “the smallest of all the exchanges,” Bitget, contravened the agreement, proceeding to announce a listing as soon as the FLOKI network announced the details of the token launch due to the hype they saw around it.

More interestingly, according to the post, the exchange “listed a fake version of TOKEN,” putting the counterfeit in the market 12 minutes before FLOKI network made its actual TOKEN (ticker for TokenFi) officially tradable on the blockchain.

Unfortunately, some people ignored multiple warnings from the FLOKI network, with the token that Bitget listed getting approximately $50 million dollars in trading volume on their exchange in a 48-hour period.

As complaints brewed with token holders being unable to withdraw their fake “TOKEN”, the situation was worse in China, where TokenFi is quite popular. Bitget started banning legitimate users of their platform when they complained about their inability to withdraw TOKEN from their exchange.

FLOKI network’s efforts to reach out to Bitget bore no fruit, but eventually, “Bitget admitted to needing up to 1 billion TokenFi tokens to meet user withdrawal requirements and fill their hole.” As this comprises 10% of the supply and is worth about $20 million at current rates, it means the exchange could have facilitated TOKEN purchase requests reaching $20 million from their users despite not having a single token in their reserves to give to these users in case they wanted to withdraw their funds. This explains why they refused to open withdrawals.

The FLOKI team is now concerned about the state of Bitget exchange’s overall solvency, likening them to FTX, and challenging the platform to publish verifiable links to their wallets so that users can see their TOKEN holdings and history.

FLOKI network concerned about Bitget solvency

Floki price loses steam after 60% pump

After a rejection from the $0.00004010 resistance level, Floki Inu price is down 15% on Tuesday, exchanging hands for $0.00003201 at the time of writing. It comes after the Relative Strength Index (RSI) triggered a sell-off when it confirmed FLOKI was overbought by crossing above the 70 level. The Awesome Oscillator (AO) is also showing a pronounced red histogram bar, suggesting bears are putting in the work.

Increased selling pressure could see Floki Inu price extend the fall below the bullish breaker (green order block), extending from $0.00003500 to $0.00003235. A decisive daily candlestick close below this level would confirm the continuation of the downtrend. This could send FLOKI further south, potentially breaking below the $0.0.00003000 psychological level before stretching toward critical support at $0.00002391.

In a more dire case, the slump could see Floki Inu price shatter past the aforementioned level, falling back into the consolidation phase between $0.00002391 and the support floor at $0.00001657.

FLOKI/USDT 1-day chart

Conversely, if sidelined or late investors flock in, Floki Inu price could pull north, reactivating the bullish breaker and possibly going as high as the $0.00004010 resistance level. A decisive break and close above this level would invalidate the bearish thesis, with bulls likely to pump FLOKI past the 0.00004500 resistance level. In a highly bullish case, FLOKI might stretch to the $0.00005000 psychological level.

Data from on-chain aggregator IntoTheBlock’s Global In/Out of the Money (GIOM) indicator shows there is robust support extending downward from $0.00003300 to $0.00002800. Any efforts to push Floki price south will be countered by buying pressure from 3,500 addresses that bought approximately 4.93 trillion FLOKI tokens at an average price of $0.00003100.

FLOKI GIOM