Gate.io, a centralized cryptocurrency exchange, has recently found itself at the center of rumors surrounding its solvency and alleged ties to the cross-chain router protocol Multichain (MULTI). However, the exchange has come forward to firmly deny these rumors, asserting that there are no issues with its operations or withdrawals. Gate.io has reiterated its commitment to maintaining stability and addressing user concerns, emphasizing that its operations continue to run smoothly.
Rumor Origin
The rumors of insolvency gained traction following a series of events related to Multichain. On May 24, Arkham Intelligence, a blockchain analytics firm, tweeted a data exchange chart showing significant inflows of MULTI to Gate.io.
These inflows were reportedly linked to information that Multichain’s team had been arrested in Shanghai. Furthermore, on May 25, Binance temporarily suspended deposits for tokens relying on the Multichain protocol due to delayed transactions.
Gate.io has swiftly dismissed these allegations and reassured its users that there is no cause for concern regarding its liquidity. The exchange has categorically stated that its operations are running without issues and has highlighted its focus on establishing an affiliated trading platform called Gate.HK in Hong Kong.
Multichain Problems
The recent disclosure by Multichain regarding its missing CEO and the non-functionality of certain routers has only added to the scrutiny faced by Gate.io.
Social media users began circulating images purportedly showing large deposits of Fantom (FTM) from Multichain team members into Gate.io. Blockchain data has confirmed that over $10 million worth of FTM was transferred from an unidentified user to Gate.io between May 25 and May 26. However, the identity of the account owner remains unconfirmed.
Gate.io has promptly addressed concerns and speculations by revealing that it experienced over $150 million in net outflows within 24 hours.
The exchange has dismissed the rumors of a police investigation and any alleged ties to Multichain as nothing more than FUD. It has underscored that its operations continue uninterrupted, with no withdrawal issues affecting its users.
Undeterred by the increased scrutiny, Gate.io remains steadfast in its commitment to stability. The exchange diligently processes all withdrawals while operating normally, demonstrating its dedication to providing a reliable platform for its users.
Conclusion
In conclusion, Gate.io firmly denies the rumors of insolvency and affirms its stable operations amidst the controversies surrounding Multichain. As the situation unfolds, market participants and cryptocurrency enthusiasts keep a close eye on the developments surrounding Gate.io and its alleged connection to Multichain. The hope is that further clarity will emerge, shedding light on the matter and dispelling any lingering doubts or concerns.
