Gate.io, a prominent cryptocurrency exchange, has addressed recent rumors circulating in the community and confirmed that its operations remain unaffected. On May 31, Gate.io stated that there are no issues with their operations or withdrawals, contrary to speculation on social media platforms.
The rumors initially surfaced on May 24 when Arkham Intelligence reported that members of Multichain, a separate blockchain project, had transferred $3 million worth of the MULTI token to Gate.io. Arkham also highlighted other transactions involving Multichain-related tokens, some of which were subsequently halted for deposit on the leading exchange Binance.
Although Arkham did not directly suggest any risks associated with Gate.io, market activity and other events fueled speculations. Coinsumption, a popular Twitter account with nearly 31,000 followers, advised users on May 31 to withdraw their funds from Gate.io, claiming that the exchange was facing insolvency problems.
It’s important to note that the issues reported were specific to Multichain, which has been experiencing its own set of problems. The project’s team members have expressed their inability to contact their CEO or access project servers, and there have been transaction delays in recent days.
Gate.io’s native token, GT, appears to have been impacted by the rumors, as its value has dropped by 6.59% in the last 24 hours. In contrast, Bitcoin has only experienced a 1.4% decline. Gate.io’s losses can largely be attributed to a temporary drop in its token price from $4.92 to $4.49, representing an 8.7% loss during that period. However, subsequent recoveries and other market fluctuations have partially offset these losses.
Despite the negative market sentiment, Gate.io remains a significant player in the crypto industry. The exchange recorded approximately $525 million in trading volume today, positioning itself among the largest centralized exchanges with sub-billion daily trading volumes.
Gate.io, alongside other exchanges such as CoinEx, OKX, Huobi, and BitMEX, plans to operate under upcoming Hong Kong regulations. These exchanges aim to comply with regulatory frameworks as the crypto industry continues to evolve.