- The net daily outflow of funds from the platform exceeded $130 million last week
- Rumors of a liquidity crisis are spreading online
- The reason for this is the possible link between Gate.io and Multichain, which has encountered technical difficulties
- Also the CEO of the latter may be arrested by Chinese authorities
The daily withdrawals from Gate.io exceeded $130 million late last week. That’s about 10% of the company’s assets. The situation worsened even more after a link between Gate.io and the Multichain protocol was uncovered.. As a reminder, the CEO of the latter has allegedly been arrested in China.
The administration made it clear last week that the platform is fully solvent. But the outflow of funds from the site continues.
Yesterday, June 4, the company said that lawsuits will be filed against users who spread rumors about the bankruptcy of the exchange. Later, the site’s Twitter page posted an official address in Turkish.
But did that allay users’ fears? No. Gate.io only fueled the panic. Some commentators have asked the exchange to conduct a PoR audit to allay fears. But the company has ignored that.
As of this writing, the GT exchange’s native token is trading at $4.21 (-13% over the past seven days). The price trend of the asset looks as follows:
It is clear that even if all the rumors of Gate.io bankruptcy are just another FUD, they have caused serious damage to the site. Against this background, it is not surprising that the exchange is ready to sue those who continue to speculate on the situation.