Don't Fall Prey To The Fear: The $GARI Story

As you might have noticed, the value of our platform-native $GARI token dropped by nearly 87% earlier this week. This sudden downward spiral has led to massive amounts of FUD (fear, uncertainty and doubt) across all social media platforms and internet forums, triggering a series of allegations about potential hacks, rug pulls, insider trading and pump-and-dump schemes.

For a little background, despite the broader market crash that transpired over the last few months, $GARI managed to sustain its value and accompanying ecosystem growth. The value of $GARI maintained its stability over the past six months, moving between the $0.70 to $0.80 price range. Then, suddenly, on July 4, 2022, the value dipped to lows of $0.11 before rebounding.

You might be wondering: What triggered this unbelievably outsized tumble in prices?

After considerable analysis and research where we scoured for all the possible reasons behind this fateful move, we are confident that the drop was sparked by a single sell order of over $2 million by a former $GARI holder.

The order was placed at around 16:10 UTC on July 4, 2022, on the KuCoin exchange. However, there wasn't enough depth in the order book to handle such substantial order flow, smashing through all the available bids in KuCoin's two-sided market for our coin. A two-sided market is imperative for proper price discovery, but the absence of more substantial liquidity for $GARI hurt that very process.

Without enough liquidity on the exchange to absorb the sizable order, the price of the $GARI token tumbled by an unprecedented amount. We are working to address these liquidity issues to deliver a more stable and less volatile experience for our loyal community of users.

We also posted a thread on our Twitter handle explaining the situation and are reiterating the fact that "after thorough evaluation, we conclude that there has been no hack or exploit to the $GARI token contract." The recent price action is entirely a market event, and we are trying our best to accelerate price recovery.

To briefly address allegations of insider trading by the Chingari team, our wallet balances remain unaltered, and this is publicly available information. Stakeholders who wish to verify these claims are welcome to double-check our wallet balance on Solscan.io to transparently see that we haven't made any alterations to our holdings.

Furthermore, we also want to reassure you that your investments are safe in their respective reserves. Our team has also initiated a series of discussions with crypto exchanges to analyze the situation, understand the causes and implement safeguards so similar incidents can be avoided in the future.

The Chingari community stands strong, with over 40 million active users and counting. We have jumped past 50 million worldwide downloads on Google Play as our creator community continues to expand into new geographies. To date, we have already distributed over a million dollars to reward our platform's content creators and community members. On top of that, almost 800,000 users are holding $GARI tokens in their wallets, and the fully diluted market cap of our $GARI token is close to edging past the $98 million mark.

More importantly, Chingari isn't just another "get rich quick" project. Backed by some of the most prominent investors, venture capital funds and celebrities, our team has successfully completed multiple funding rounds in 2021, including a $19 million Series A led by Republic Crypto and Galaxy Digital and another $13.37M Series A continuation.

We had also raised upward of $40 million from our first-ever ICO (initial coin offering), and our $GARI token is the first Web3 social token to gain simultaneous listings across major decentralized and centralized exchanges, such as Huobi, Gate.io, OKEx, FTX, KuCoin and MEXC Global.

Our Web3-powered short video content platform, Chingari, has empowered millions of creators to monetize their content while granting them complete control and ownership over what is rightfully theirs. Chingari is the first-of-its-kind platform that incentivizes both content creators and consumers, thereby building a circular economy where everyone is entitled to benefits.

In other words, don't believe all the misdirection and salacious rumors permeating the internet. We apologize for the wild ride you experienced but are nevertheless confident in our outlook and ability to deliver meaningful value to our stakeholders over the long term.

(Sumit Ghosh is the CEO and Founder of Chingari)