Some rumors have surfaced for Bitcoin and altcoin exchange Gate.io. After community rumors were investigated by the police, Gate.io experienced a net outflow of $150 million in the past 24 hours, accounting for about 10 percent of its net reserve assets. Gate has released a statement stating that its operations are running smoothly without any withdrawal issues. Here are the details…
Bitcoin and altcoin exchange Gate.io responds to rumors
Crypto exchange Gate.io said in a statement on May 31 that, contrary to rumors circulating in the community, its activities have not been affected by other events. Numerous Twitter channels were saying that the exchange is linked to the cross-chain protocol Multichain (MULTI). As we reported as Kriptokoin.com, Multichain is going through hard times due to the disappearance of its founder. As a result, Gate’s alleged involvement with this altcoin project has raised liquidity concerns. However, Gate denied these allegations. The crypto exchange underlined that “operations continue in a healthy way”. He also revealed that he is focusing on establishing an affiliate trading platform called Gate.HK in Hong Kong.
We'd like to assure you that https://t.co/8kWqgEeplL operations are running smoothly with no withdrawal issues.
Less FUD, More Trust. ❤️
Read more at: https://t.co/QsacFCtvbo
— Gate.io (@gate_io) June 1, 2023
Speculations surfaced on social media on May 24. At the time, Arkham Intelligence said members of Multichain moved $3 million of MULTI to Gate.io. Arkham also identified several other transactions related to Multichain related tokens transferred to or from Gate.io. As a result, rumors that Gate is facing bankruptcy came to the fore with the Arkham report. Arkham had tweeted data showing large MULTI entries to Gate.io. The blockchain analytics firm said this funding entry was related to rumors that the protocol team was “arrested in Shanghai.”
Arkham has not made it clear that Gate.io itself is at risk. However, market volatility and other events gave rise to rumors. Coinsumption, a Twitter account with nearly 31,000 followers, claimed on May 31 that Gate.io was “having bankruptcy issues.” He then advised users to withdraw their funds from the exchange.
Some large investors like @HashKeyGroup have taken action, moving $250K to https://t.co/5ecSG3rKek around 4 hours ago.
An entity holding large amounts of $MULTI on Gate has also moved ~$1.5M to Huobi, perhaps for better pricing. pic.twitter.com/7MKnhNMeZ4
— Arkham (@ArkhamIntel) May 24, 2023
Exchange affected by Multichain issues
There are also problems with Multichain, which has nothing to do with Gate.io. Team members of the project said they were unable to contact their CEO or access the project servers. Multichain has experienced transaction delays over the past few days. As previously reported, Multichain has issued a statement stating that its CEO is missing. He added that some routers of the protocol no longer work because only the CEO has access to the respective servers. Some Twitter users have started posting images of transactions from Multichain team members allegedly depositing large amounts of FTM on Gate.io.
According to Etherscan data, more than $10 million in FTM was transferred to Gate.io from an unknown user on May 25-26. However, the identity of the account holder who transferred these funds could not be verified. After a series of massive MULTI and Phantom deposits to Gate.io, rumors surfaced on Twitter that the crypto exchange is suffering from the collapse caused by Multichain.
GT price drops
Gate.io’s token (GT) may have been affected by the rumors that the asset’s value dropped 6.59 percent in 24 hours. Gate.io’s exchange saw approximately $525 million in trading volume today. It was among the largest centralized exchanges with a daily trading volume of less than one billion.
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