Gate.io Discards Rumors of Its Closure Amid the Debacle of Multichain

The popular crypto exchange company Gate.io is attempting to eliminate the widely circulating rumors. As per the rumors, the company is moving toward its demise. This is being witnessed at a time amid the latest debacle of Multichain (a cross-chain protocol).

In the previous week, the Multichain token’s value slumped to a great extent. It witnessed a decline of up to twenty percent. This occurred as the withdrawals of the MULTI token got stuck.

Rumors Arise about the Gate.io’s Involvement in the Multichain Incident

The precise cause behind the respective incident is unknown at present even though there are a couple of theories in this respect. Some people are of the view that the withdrawals and deposits of the respective token went through the issue because of an inadequately executed update for the system. The update reportedly took a considerably long time as opposed to the usual.

Nonetheless, after that, some other rumors also started surfacing. According to rumors, the developer team of Multichain was detained by the police in the jurisdiction of Shanghai. However, the respective speculations have not been confirmed yet by the responsible parties. In addition to this, one thing has been confirmed.

The reports pointed out that the chief executive officer (CEO) of Multichain is missing currently. On the other hand, the developers at the platform do not have any access required to carry out server maintenance.

The possible explanation for the downtime can be clarified by that access. In addition to this, the rumors about the arrest of the developer have resulted in a disservice as the holders of the MULTI tokens have begun shifting their funds in large amounts.

As mentioned by the reports, some wallets have moved up to $3 million worth of tokens to the crypto exchange Gate.io. An anonymous consumer sent nearly $2.75M to Gate.io. These things have raised apprehensions about the linkage between the two platforms.

During the last week, the assets supposedly owned by the participants of the developer team have been transacted to Gate.io.

Most notable among these incidents is a series of transfers that added Fantom tokens of up to $10M worth. There are also some rumors circulating about the role of the crypto exchange Gate.io in all this. Some accuse the crypto exchange of allegedly covering the team of Multichain as they are supposedly associated with the team members.

Nonetheless, the crypto exchange moved forward and a statement was published by it to confront the rumors against it. The platform claimed that it was not involved in the matter of Multichain.

A spokesperson from the company brought to the front that the platform’s employees are busy in the case of its 10th anniversary, especially to complete the paperwork regarding getting a Virtual Asset Service Provider (VASP) license.

The acquisition of the respective license is inevitable to launch an exclusive trading platform that would provide services to Hong Kong-based customers. The spokesperson additionally talked about the coming bonuses for the community, taking into account several consumer campaigns to venerate the 10th birthday of the platform.

After the controversy, Lookonchin (a blockchain analytics company) determined to release an updated list of assets held on the platform of the crypto exchange. According to that list, up to six wallets hold a cumulative amount of almost $1.44B. These wallets include SHIB, BTC, USDT, ETH, and GT tokens.