Salman Khan, an A-list celebrity from Bollywood, released the GARI token to empower Indian content creators to get a profit through the short-form video platform Chingari.
The GARI token dropped more than 83 percent of its value in a matter of hours on June 4 as a consequence of the 2022 bear market’s cascading effects, which saw the collapse of multiple crypto ecosystems and tokens over the course of several months. Investors think the development is a “rug pull” even though GARI Network rejected it as a “market occurrence.”
Salman Khan, an A-list actor from Bollywood, launched the GARI token intending to help Indian content creators monetise their work through the short video application Chingari and its nonfungible token (NFT) marketplace. Data from Cointelegraph Markets Pro and Trading View indicate that, despite a speculative environment, GARI’s value stayed essentially stable, averaging out to about $0.6 during the last six months.
GARI began moving in a bearish trend on June 20; however, its steadfast support failed on June 4 when the token plunged by 83.29 percent to reach its all-time low trading value of $0.13. Investors began equating the situation with the Terra (LUNA) and TerraUSD (UST) collapse shortly after, with one of the attendees referring to the actor as “Salman Kwon.”
Taking command of the issue, GARI Network went out internal analysis and identified no obvious hacks that may drive down the pricing of the tokens, saying:
“So far this looks like a market event. We assure our community that ALL tokens are safe in the respective reserves.”
The team also stated that it was in conversation with Indian cryptocurrency exchanges to understand the situation better. The GARI network also wants to host an AMA session to assuage investor fears and spur interest. . When the viewers attempted to join the session, they were hit by a 404 error.
The GARI tokens are used to “link and deal with their counterparties, place governance votes, and drive platform engagement and user base building,” as per a spokesman for Chingari, who previously spoke to a Media release. Investors are compelled to make informed investments after doing their own due diligence, or in other words, doing their own research, given that not even the support of an A-list actor from Bollywood could save GARI token from the fury of the bear market (DYOR).
Request for comment from GARI Network has not yet received a response.
Crypto exchanges noted a significant decline in trading volumes shortly after India implemented its new cryptocurrency tax law, which mandates investors to pay a 1 percent tax deduction at source (TDS) on each transaction.
The daily trading volumes of CoinDCX, the first crypto unicorn in India, decreased by 90.9 percent, while those of the cryptocurrency exchange BitBNS declined by 37.4 percent.