LeverFi mints $13.7B LEVER tokens as Binance delisting looms

LeverFi rose to the spotlight last week after Binance announced it would delist it and four other altcoins on July 4, triggering mixed price performances in these tokens.

While removal from a top trading platform hurts crypto projects, the latest blockchain transactions from LeverFi have magnified worries among LEVER holders.

Notably, the protocol has minted 13.7 billion tokens days before the scheduled delisting.

The move has raised questions about the potential effect on LEVER’s value, transparency, and timing.

Nevertheless, the massive token issuance has increased LEVER supply to nearly 56 billion from 35 billion.

While the minting matches the team’s May announcement about the LeverAI staking program, the close timing to the imminent delisting and movement of some of the new coins to Bybit and MEXC has sparked concerns among traders and holders.

LeverFi hasn’t communicated the motive behind the massive token minting as Binance’s delisting looms.

LeverAI and supply cap surge

The decentralized protocol announced LeverAI, an AI-powered automation and staking program, on May 15.

The team confirmed it would increase the token supply from 35,000,000,000 to 55,786,500,000, with plans to support growth initiatives such as AI developments, ecosystem incentives, and staking rewards.

Thus, the latest mint matches the planned tokenomics upgrade. However, the rollout comes amid bearish sentiments as enthusiasts brace for Binance delisting later this week.

The absence of real-time updates from the team on the token allocation has intensified worries about the supply expansion.

Some suggest that the partial deposit to Bybit could indicate an upcoming dump, especially with Binance ceasing support.

However, proponents trust the move is part of liquidity redistribution as LeverFi explores other exchanges.

Binance delisting fuels speculations

Binance remains crucial for liquidity as it enhances visibility, accessibility, and volume. Therefore, removing support for LEVER means a significant blow.

Binance users will no longer access LeverFi’s native token starting July 4, translating to lower exposure and reduced liquidity.

The exchange delists projects that have failed to impress due to factors like unresponsive teams, lower ecosystem developments, and inactive communities.

The LeverFi team should act accordingly to maintain the brand image by cementing its presence on different platforms.

Moreover, the protocol has to justify the native token’s utility using the LeverAI program.

 Therefore, the team might have conducted the minted for optimistic purposes, including supporting AI-driven expansion, rewarding users, and backing staking pools.

However, clarity from the team remains crucial to remove doubts among LEVER enthusiasts.

LEVER price outlook

Despite the increasing uncertainty, the native token gained over 3% in the previous 24 hours, likely driven by broad market rebounds.

However, LEVER will unlikely sustain this rally amid the massive supply increase and delisting debates.

It has lost over 20% of its value over the past seven days, reflecting fading market confidence and concerns about token dilution.

However, LEVER’s long-term potential will depend on how the team responds to this pivotal moment.