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Crypto exchange Gate.io’s token GateToken (GT) has sharply decreased in price following rumors that it has been affected by the Multichain incident. The exchange has stated that it is in a healthy condition.
GateToken (GT), the token of crypto exchange Gate.io, has seen a sharp drop of about 10% after it experienced heavy outflow in 24 hours. The exchange saw $148 million leave the platform in a day, and that figure looks like it will continue to increase.
GateToken (GT) Takes a Hit
According to DeFiLlama, among the top 10 centralized exchanges, Gate.io has seen the highest level of outflows. Outflows over a 7-day and 1-month period are also high, standing at $176.3 million and $222.7 million, respectively.
It’s unclear why so much money is flowing out of Gate.io at the moment. Nevertheless, the movement has hit GateToken (GT) hard, with the current price being $4.53. On May 31, the price was $4.87. The crypto community is unsurprisingly awash with rumors about what exactly has happened.
Gate.io Denies Multichain Incident Is Affecting It
The rumors are that Gate.io’s financial health isn’t in a very good state, with operations and withdrawals having issues. On Twitter, users have been talking about the issues of Multichain, a crypto bridge, impacting Gate.io. Multichain’s CEO is allegedly missing and unable to be reached.
Gate.io has denied these rumors and stated that “operations are running healthily.” Some of the funds being moved out of the exchange have been the MULTI token, with the price of this falling by over 26% in the last 24 hours.
Binance has already suspended deposits for several bridge tokens that use the Multichain protocol. Gate.io has not taken any such action but has said that it was focusing on launching the Hong Kong version of its platform.
FTX Collapse Helped Gate.io Gain Numbers
The collapse of FTX sent shockwaves throughout the crypto world and beyond, and Gate.io was one of the beneficiaries. The exchange saw a significant increase in usage as users flocked out of FTX and into other platforms.
Gate.io saw a 300% decrease in search interest and a turnover of 181%. The number of weekly users during this period was also high, with the exchange seeing 1.398 million users every week.