Gate Exchange popularly known as Gate.io, a cryptocurrency exchange, has denied rumors of liquidity problems after the CEO of Multichain, a cross-chain protocol, went missing.
Multichain’s CEO, Mudit Gupta, went missing on May 30, 2023. Gupta was last seen in Singapore.
The rumors of Gate.io’s liquidity problems started after some users on Twitter posted screenshots of large deposits of MULTI and Fantom tokens to Gate.io. MULTI and Fantom are both tokens that are used on the Multichain protocol.
Gate.io has denied the rumors, saying that the exchange has “no issues with our operations or withdrawals.” The exchange also said that it is “focused on establishing an affiliated trading platform in Hong Kong called Gate.HK.”
It is unclear what happened to Gupta. Multichain has not released any information about his whereabouts.
The rumors of Gate.io’s liquidity problems have caused some investors to worry about the safety of their funds. However, the exchange has denied the rumors and said that it is “committed to protecting the interests of our users.”
On May 25, Binance suspended deposits for several bridged tokens that relied on the Multichain protocol, including bridged versions of Polkastarter (POLS), Alpaca Finance (ALPACA), and Fantom (FTM).
It is important to note that Gate.io is not the only cryptocurrency exchange that has been rumored to have liquidity problems. In recent months, a number of other exchanges have also been the target of rumors.
The rumors of liquidity problems at cryptocurrency exchanges are a sign of the growing risks in the cryptocurrency industry. Investors should be aware of these risks and should carefully consider their investment decisions.