Bollywood A-lister-backed GARI token plunge sparks rug pull rumors

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The domino effect of the bear market of 2022, which saw the collapse of many crypto ecosystems and tokens over several months, reached the GARI token as it lost over 83% of its value in a matter of hours on June 4. Growth as a “market phenomenon,” investors are skeptical of the event pulling a rug.

The GARI token was launched by Salman Khan, a Bollywood A-list celebrity, with an aim to help Indian creators monetize their content on Spark, a short video application and its non-fungible token (NFT) marketplace. Data from Cointelegraph Markets Pro and TradingView shows that GARI has maintained a fairly stable price over the past six months amid volatile markets, averaging around $0.6.

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GARI’s bearish movement began on June 20, however, its long-term support ended on June 4, when the token fell 83.29% to its all-time low trading price of $0.13. Soon after, investors began to compare the situation to the collapse of Terra (LUNA) and TeraUSD (UST), with one member of Call Actor “Salman Kwon.”

Taking control of the situation, the GARI Network conducted an internal assessment and found no apparent hack that could drive down the price of the token, stating:

“So far it looks like a market event. We assure our community that all tokens are safe in the respective reserves.”

The team also revealed to be in talks with Indian crypto exchanges to further assess the situation. Additionally, GARI Network also plans to host AMA sessions to clarify doubts and improve investor sentiment. However, the audience received a 404 error when attempting to join the session.

Speaking to Cointelegraph earlier, a Spark spokesperson said that the GARI token is used to “connect and transact with its peers, vote governance, and catalyze platform engagement and user base growth.” Seeing as that doesn’t even have the A-list celebrity endorsement. To protect GARI tokens from the wrath of a bear market, investors are advised to make informed investments on due diligence, in other words, do your own research (DYOR).

The GARI Network has yet to respond to a request for comment from Cointelegraph.

related: Indian crypto trading volumes fall after heavy taxes

Soon after India implemented its new crypto tax law, which requires investors to pay 1% tax deduction at source (TDS) on every transaction, crypto exchanges reported a sharp drop in trading volumes.

CoinDCX, India’s first crypto unicorn reported a 90.9% drop in daily trading volume, while crypto exchange BitBNS saw a drop of 37.4%.