GateToken

Multichain

<h2 id="header-0">Rumors and Legal Actions</h2><p>Gate.io, a centralized cryptocurrency exchange, has expressed its intention to take legal measures against the spreading of bankruptcy rumors. Speculation has been rampant since May in the cryptocurrency community regarding a possible link between Gate.io and the struggling cross-chain protocol Multichain.</p><p>“Those who spread panic amongst investors through mere rumors and gossip without any substantial evidence will face legal action,” was the message conveyed in a June 4th Twitter announcement, originally posted in Turkish.</p><h2 id="header-1">Multichain Incidents Fueling Insolvency Speculations</h2><p>The bankruptcy rumors surrounding Gate.io came to light following a chain of events related to Multichain. The cross-chain protocol has been dealing with technical issues since May 24, when a node problem resulted in transaction delays. The Multichain team revealed a few days later that they were unable to reach their CEO to rectify the server issues, intensifying previous rumors about the arrest of the protocol’s leadership and the seizure of over $1.5 billion in smart contract funds by Chinese authorities.</p><h2 id="header-2">Gate.io’s Response to Liquidity Concerns</h2><p>Gate.io initially refuted any <a href="https://blockchainreporter.net/glossary/liquidity/" rel="noopener noreferrer nofollow">liquidity</a> issues on May 31, maintaining that its operations were functioning normally and that withdrawals weren’t a problem. Despite numerous reports of traders withdrawing funds on Twitter and Telegram, the exchange’s <a href="https://blockchainreporter.net/glossary/trading/" rel="noopener noreferrer nofollow">trading</a> volume appears to have remained steady in recent days.</p><h2 id="header-3">Gate.io’s Current Trading Situation</h2><p>At present, Gate.io’s native token, GateToken (GT), is trading at $4.27, indicating a decrease of 9.7% over the past week, <a href="https://www.coingecko.com/en/coins/gatetoken" rel="noopener noreferrer nofollow">according to CoinGecko data</a>. The exchange, originally established in 2013 in the Cayman Islands, has recently broadened its reach to Hong Kong, Turkey, and Dubai.</p><h2 id="header-4">Other Exchanges’ Actions in Light of Multichain’s Troubles</h2><p>The ongoing problems with Multichain have driven other cryptocurrency exchanges to take measures. On May 25, <a href="https://blockchainreporter.net/binance-suspends-deposit-for-bridged-tokens-seeking-clarity-from-the-multichain-team/" rel="noopener noreferrer nofollow">Binance suspended deposits for 10 bridged tokens</a> on the BNB Smart Chain, Fantom, <a href="https://blockchainreporter.net/ethereum-price/" rel="noopener noreferrer nofollow">Ethereum</a>, and Avalanche <a href="https://blockchainreporter.net/blockchain/" rel="noopener noreferrer nofollow">blockchain</a> networks. Transaction downtime also led to the Fantom Foundation withdrawing 449,740 MULTI ($2.4 million) from liquidity on the decentralized exchange SushiSwap.</p>

Gate.io Considers Legal Measures Against Bankruptcy Rumor Spreading

Table of Contents

BlockchainReporter

Other articles published on Jun 4, 2023

Solana vs Ethereum, Which One Is Better?

May 28- June 03, 2023 Top Crypto News Recap: BKEX Halts Withdrawals, Mercedes Launches NFT, Elon ...

OPEC+ Holds Firm on 2023 Oil Production Targets; Saudi Arabia Announces Additional Cuts

Blockchainreporter – Weekly News Review, Stablecoins and CEXs in Spotlight

Understanding Miner Capitulation and Its Impact on Bitcoin's Price

The Ascending Trajectory of $RON: Setting the Pace for Years to Come

Join our free newsletter for daily crypto updates!