- Gate.io threatens to sue anyone spreading rumors about its imminent bankruptcy.
- Speculation about its financial status emerged after technical challenges with Multichain.
- Nonetheless, Gate.io boasts impressive trading volume, confirming its financial state.
Centralized cryptocurrency exchange, Gate.io, has declared possible legal action against anyone spreading the buzz about its potential bankruptcy. The rumors have been circulating in the crypto world since May following the connection between the CEX and the troubled Multichain protocol.
However, the trading platform has issued a legal warning against individuals that cause panic and worry among traders and investors based on speculation without a solid backing.
Why the rumors?
The bankruptcy speculation surfaced after Multichain suffered multiple incidents. On 24 May, the protocol encountered technical issues. Coupled with the failure to reach out to the CEO sparked worries that Chinese lawmakers have seized more than $1.5B in funds and arrested the firm’s leadership. That attracted speculation of possible Gate.io bankruptcy.
Also, Coinsumption’s Twitter account added to the speculation. With its 31K followers, it tweeted that Gate.io was encountering liquidity issues and that users should withdraw their investments from the exchange.
The news impacted Gate.io’s native token substantially, with GT losing more than 8% within a day. Also, users withdrew a notable $142M from Gate.io, representing 11.2% of its $1.26B in asset reserve- excluding native GT.
Gate Token (GT) traded with a bearish stance during this publication. Coinmarketcap data shows the alt changing hands at $4.14 at press time, and sellers appear to dominate.
Gate.io Still Healthy
Despite the rumors, Gate.io maintains healthy operations, and users haven’t met any withdrawal challenges. The centralized exchange has retained stable trading volume despite reports of investors withdrawing their funds.
Gate.io’s future within the cryptocurrency world remains promising (despite the pessimistic allegations). The firm continued to expand its territory – lately joining Dubai, Turkey, and Hong Kong. Such developments reflect Gate.io’s dedication to thriving in the dynamic crypto industry.
The latest legal warning shows the exchange isn’t letting anyone tarnish its name, and anyone violating that will meet consequences. The cryptocurrency community continues to monitor these developments.