- Gate.io swiftly denied security breach rumors, reassuring users their funds are safe and all operations remain normal.
- After rumors caused a brief dip, GateToken (GT) quickly surged 8% following Gate.io’s public statement.
- Gate.io maintains over $10 billion in reserves, emphasizing transparency and security amid unfounded hack claims.
Gate.io, one of the most popular cryptocurrency trading platforms, has strongly dismissed rumors of security complications that emerged on December 13 and raised concern among consumers. The rumors converged on the possible financial losses which could stem from them, nevertheless the exchange hastened to state that all operations including making deposits, withdrawals and trading services remained operational. Gate.io released a statement on social media, denying the allegations saying that users’ funds are safe.
Gate.io Reassures Users
In a Friday post on X (formerly Twitter), Gate.io, the crypto exchange, calmed its users by confirming that all was well and urging them to ignore the rumors. The platform also stressed that it holds more than 100% of the reserves and has more than $10 billion of funds. Kevin Lee, the Chief Business Officer at Gate.io, assured that there was no breach in the exchange’s security, and all features and services were available for use.
The company also revealed that no security agencies had reported any issues with the operations of the platform. It was a message designed to calm users down and to remind them of the services’ focus on trust and security. Such swift response was effective in stabilizing the exchange and stopping the adverse effects of the rumours.
Rumors and Market Response
However, the exchange quickly came out to clarify the situation and the rumours caused a temporary dip in the GateToken (GT) prices which fell by 3.8%. But the token bounced back immediately after the exchange issued its public statement, rising by 8%. At the time of writing, GT has recorded a trading price of $13.20 and the trading volume of GateToken has declined by 46.21%,
Source: TradingView
The hack rumors, it is said, originated from a post made by a user known as NaniXBT. However, there was no proof of a breach or a security event on the platform according to Arkham Intelligence. Albeit the market responded to the claims, there has not been much of a consequence as Gate.io still ranks among the top 20 exchanges globally in terms of trading volume.
Gate.io has always been known for its focus on security and this has probably helped to minimize the effects of the rumors. Thus, such a quick and clear response to the situation has allowed the platform to regain users’ trust and strengthen its position in the market as a secure exchange.
