Gate.io, the famous cryptocurrency exchange, has denied all rumors regarding its liquidity issues and has stated that there are no problems with the operations and withdrawals. However, the clarification statement comes not too long after a considerable number of Twitter channels alleged that Gate.io had been experiencing solvency issues as a result of its ties with Multichain. Amid the widespread rumors, the Gate.io team clarified that all of its operations were fine, and is solely focused on developing a trading platform in Hong Kong, dubbed Gate.HK.
The platform added,
“In terms of our global strategic layout, following Turkey and Dubai, Gate Group’s trading platform in Hong Kong, Gate.HK, officially launched its operations on May 23rd, offering registration and trading services. Gate.HK is specifically designed for users in the Hong Kong region, aiming to provide virtual asset investors with an exceptional trading experience.”
However, rumors revolving around the solvency of Gate.io began to surface not too long after Multichain landed itself in a heap of problems. Just recently, Arkham Intelligence shared data that specified considerable inflows of MULTI to Gate.io. The blockchain analytics firm also stated that the inflows resulted as a result of the rumors surrounding the arrest of the Multichain team in Shanghai.
Similarly, Binance suspended withdrawals for several bridged tokens that relied heavily on the Multichain protocol. However, Binance clarified that these tokens suffered from delayed transactions and had to pause their deposits until optimum clarity was received from Multichain.
Huge Inflows to Gate.io
On May 31, a statement regarding the disappearance of the Multichain CEO surfaced. It was mentioned how some of the protocol’s routers had stopped working as the CEO had access to these servers. During the same day, a number of Twitter users took a step ahead and shared images of transactions that highlighted large deposits of FTM from several Multichain members to Gate.io.
According to a number of sources and the shared blockchain data, it was reported that FTM tokens worth more than $10 million were transferred from an unknown user to Gate.io between May 25-26. Currently, the identity of the user behind such a large transfer is shrouded in mystery.
Moreover, the increased inflows to Gate.io made the masses speculate about a potential fallout between Multichain and Gate.io, apart from the rumors surrounding a potential liquidity crisis for the firm. As of now, the Gate.io team has denied all of these rumors, has stated that it is facing no liquidity problems, and has also clarified that all of its operations and withdrawals are working normally.