LeverFi Mints 13.7 Billion Tokens Amid Binance Delisting

LeverFi, a decentralized protocol, has recently minted 13.7 billion LEVER tokens, increasing the total supply to nearly 56 billion from 35 billion. This move comes just days before Binance, one of the world's largest cryptocurrency exchanges, is set to delist the token on July 4. The delisting, along with the sudden increase in token supply, has raised concerns among traders and holders about the potential impact on LEVER's value and the transparency of the protocol's actions.

The minting of new tokens was announced in May as part of the LeverAI staking program, an AI-powered automation and staking initiative aimed at supporting growth initiatives such as AI developments, ecosystem incentives, and staking rewards. However, the close timing of the minting to the delisting and the movement of some of the new coins to other exchanges like Bybit and MEXC has sparked speculation and worry among traders and holders.

Binance's decision to delist LEVER, along with four other altcoins, is a significant blow to the protocol. The exchange is crucial for liquidity, visibility, and volume, and its removal of support for LEVER means lower exposure and reduced liquidity for the token. Binance typically delists projects that have failed to impress due to factors like unresponsive teams, lower ecosystem developments, and inactive communities. LeverFi's team will need to act accordingly to maintain the brand image and justify the native token's utility using the LeverAI program.

Despite the increasing uncertainty, the native token gained over 3% in the previous 24 hours, likely driven by broad market rebounds. However, it is unlikely to sustain this rally amid the massive supply increase and delisting debates. LEVER has lost over 20% of its value over the past seven days, reflecting fading market confidence and concerns about token dilution. The long-term potential of LEVER will depend on how the team responds to this pivotal moment and provides clarity on the token allocation and the protocol's future plans.