GARI token, the digital asset promoted by Bollywood actor Salman Khan, reportedly fell over 80 per cent recently due to hacking rumours, which have since been refuted by Chingari, the company that owns the token.
So what exactly caused the crash? Read on to find out.
What Caused The Crash?
The price of the GARI token abruptly dropped by over 80 per cent in a couple of minutes on July 4. It was rumoured that a hack was responsible for the steep drop.
However, the developers later clarified that no hack was found in the token, and the drop was caused by a whale who sold $2 million worth of tokens at once on an exchange, which led to the value dropping as liquidity became an issue.
The team further asserted that their tokens are intact. On Solscan, it appears that the treasury, team, and distribution wallets, which together make up the top three wallets and control 75 per cent of GARI holdings, are still intact.
“Once again we would like to thank our community who have put their immense trust and love in the $GARI network. We appreciate your feedback, love and support,” said GARI in a statement.
The Story Of GARI
Chingari, a social media platform founded in 2018 by Sumit Ghosh, Biswatma Nayak and Deepak Salvi, is based on Solana blockchain. Over 5 crore people have downloaded the app from the Play Store.
Salman Khan joined as Chingari’s brand ambassador, after which the GARI token was formally launched in October 2021.
The company has raised over $88 million from over 30 investors, including Republic Capitals, Solana Capital and Kraken.
By rewarding users and artists with GARI tokens for viewing or creating content, the programme hopes to establish a distinctive creator economy. These tokens can be redeemed on exchanges for actual fiat currency.
Last week, Chingari announced plans to pay its creators in cryptocurrency. For this, it will pay creators with its own native token, GARI, from a daily pool of 50,000 tokens, Outlook Money reported.
Creators can also use GARI badges, which are non-fungible tokens (NFTs) that a user or creator might purchase in the Chingari app to increase their profits up to 10 times, depending on the badge level. These badges will come in Basic, Bronze, Silver, Gold, and Diamond categories with yield of two times, three times, four, five and 10 times, respectively, Chingari said.
