Amid all the speculations, a lot of money has been flowing out of Gate.io. Its token (GT) has been hit hard and it has seen a significant decrease in its price.
Full-service digital asset exchange Gate.io has promised to apply legal action in response to rumors regarding its bankruptcy that have been around since May. Gate.io has been allegedly experiencing serious insolvency issues because of its connection with the cross-chain protocol Multichain and its MULTI token.
The tweet posted by the exchange reads:
“Legal proceedings will be initiated against people who cause panic among investors only with rumors and gossip, without relying on any concrete source.”
Earlier, the exchange also stated that there were no issues with its operations or withdrawals as rumored. Meanwhile, multiple sources were talking about Gate.io’s insolvency and difficulties with withdrawals due to the connection between Gate.io and the troubled Multichain protocol.
Multichain has allegedly moved $3 million worth of MULTI tokens to Gate.io. Other transactions to and from Gate.io have taken place as well, and some of them concerned Multichain-related tokens that were later halted for the deposit on the Binance exchange.
Amid all the speculations, a lot of money has been flowing out of Gate.io. Its token (GT) has been hit hard, it has seen a significant decrease in its price. Last week, the exchange saw $148 million leave the platform in a day. The price of Gate (GT) is $4.21 as of press moment, with a 24-hour trading volume of $902,639. This represents a 4.24% price decline in the last 24 hours, as well as a 13.35% price decline in the past seven days. The current GT price is as much as 67.47% lower than the all-time high level.
What Happened to Multichain?
The first news about moving MULTI tokens appeared on May 24, when blockchain analytics startup Arkham Intelligence released data showing enormous inflows of MULTI to Gate.io.
Further, on May 25, Binance halted the deposit of tokens bridged by Multichain, including bridged versions of Polkastarter (POLS), Alpaca Finance (ALPACA), Fantom (FTM), Alchemy (ACH), Beefy (BIFI), SuperVerse (SUPER), and more. According to Binance, the mentioned tokens were experiencing delayed transactions. The exchange also started seeking clarity from Multichain.
We’ll be temporarily suspending deposits for the following bridged tokens-network while we await clarity from the Multichain team.
POLS-BSC
ACH-BSC
BIFI-FTM
SUPER-BSC
AVA-ETH
SPELL-AVAXC
ALPACA-FTM
FTM-ETH
FARM-BSC
DEXE-BSCDeposits of the above assets on other networks are…
— Binance (@binance) May 25, 2023
On May 31, Multichain stated that its CEO Zhaojun was missing. At that time, reports about his arrest in Shanghai appeared. Multichain noted that a few of its routers no longer worked since it was only Zhaojun who had access to particular servers.
Over the course of all these events, the Multichain token has dropped by more than 50% within less than a week, reaching record lows. As of the press moment, it is trading at $3.56. In the last seven days, MULTI has lost 25.3%. With a circulating supply of 19 million MULTI tokens, Multichain is valued at a market cap of $68,273,263.
Darya is a crypto enthusiast who strongly believes in the future of blockchain. Being a hospitality professional, she is interested in finding the ways blockchain can change different industries and bring our life to a different level.
