Quick take:
- Gate.io has refuted claims it is facing operational issues due to Multichain’s unrelated crisis.
- Reports emerged on Wednesday claiming the users had issues withdrawing funds.
- Its native token $GT fell by 10% but the company maintains operations are running smoothly.
Gate.io’s native token GateToken $GT fell by nearly 10% over the past 24 hours amid reports the crypto exchange company was experiencing operational issues. Earlier reports also linked the GT price decline to Multichain’s unrelated crisis following rumours the cross-chain bridging protocol’s CEO had been arrested.
However, Gate.io in a statement published on its website quashed claims it is experiencing operational and withdrawal issues.
“Recently, there have been rumours circulating regarding Gate.io. We would like to clarify that our operations are running healthily, withdrawals are functioning properly, and there are no issues with our operations or withdrawals as rumoured,” the company wrote in a blog post.
This, however, did not prevent its native token from declining further early on Thursday.
According to reports, Gate.io also experienced a $148 million outflow amid reports linking its falling token price to the disappearance of the Multichain CEO.
Decentralised finance (DeFi) total value locked (TVL) aggregator platform, DefiLlama indicates that Gate.io has experienced the highest level of outflows with figures for the 7-day and 1-month periods also soaring high at $176.3 million and $222.7 million, respectively.
The Cayman Islands-based crypto exchange is currently holding its 10th-anniversary celebrations barely a week after launching Gate Group’s Hong Kong trading platform, Gate.HK.
Social media chat on Twitter suggested on Wednesday that Multichain’s woes may have affected the $GT token. The cross-chain bridging protocol said it could not contact its CEO, prompting it to shut operations. Rumours circulated later that Zhao Jun may have been arrested.
On-chain researcher ArkhamIntel on last week posted a series of screenshots that showed a handful of crypto whales moved their assets from MULTI to Gate.io.
Multichain halted services for several chains including Kekchain, PublicMint, Dyno Chain, Red Light Chain, Dexit, Ekta, HPB, ONUS, Omax, Findora and Planq running. Rumours that the cross-chain bridging protocol was experiencing challenges also began to swirl last week.
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