Crypto Exchange Gate.io Rejects Rumors That Sank Related Token

Olga Kharif and Muyao Shen, Bloomberg News

Cables connected to a mining rig at the Minto cryptocurrency mining center in Nadvoitsy, Russia, on Friday, Dec. 17, 2021. Bitcoin extended its five-week slide from an all-time high with risk sentiment across global financial markets dwindling. Photographer: Andrey Rudakov/Bloomberg , Bloomberg

(Bloomberg) -- Crypto exchange Gate.io saw net outflows of about $142.2 million despite rejecting speculation about its health that caused a related token to sink, saying its “operations are running healthily.”

Gate.io had about $1.61 billion in total assets on the platform on June 1, down from $1.88 billion on May 31, according to data tracker DeFiLlama.

The platform, which is about a decade old and ranked in the top 20 globally for crypto trading volume in the past 24 hours, said in a blog post Wednesday that “there are no issues with our operations or withdrawals as rumored.”

Twitter posts had suggested that troubles at Multichain, a decentralized finance venue for moving crypto between different blockchains, could have a bearing on Gate.io. Multichain has said it’s unable to contact its chief executive.

Read more: DeFi Project Multichain ‘Unable’ to Contact Its Chief Executive

Gate.io didn’t return requests seeking comment.

GateToken, the Gate.io utility coin that offers trading-fee discounts, fell about 5.5% over the past 24 hours, CoinMarketCap data shows. It dropped as much as 8%. Gate.io had about $445 million in trading volume in the past day, according to CoinMarketCap.

Last year’s $1.5 trillion digital-asset rout toppled a number of crypto businesses, most notably the FTX exchange. As a result, the sector is generally on edge about the resilience of trading venues, a concern that has contributed to a decline in liquidity.

(Updates with net exchange outflows and GateToken price information)