Representatives of the Gate.io cryptocurrency exchange commented on the situation with the abnormal growth in trading volume, writes The Block.
On the evening of December 4, 2023, the platform’s daily trading turnover reached $4 billion. This is many times higher than the Gate.io average.
Exchange representatives said that the problem lies in the actions of some users.
We are talking about the so-called “quantum” trading strategy. It is quantitative trading based on automated trading. This strategy is characterized by a high frequency of transactions.
The incident provoked a conflict between the management of the exchange and the RATS memcoin community, created on the basis of the BRC-20 standard. Users accused Gate.io of fake transactions and publicly called for a boycott of the platform.
爷作为第一批提币运动发起人，此时此刻，我们正在全力执行并推动整个币圈的提币运动，请给我们一点支持！ #rats #BRC20
Home事情！回归中本聪初心 @ChandlerGuo pic.twitter.com/i9aM4LQmZt
— Jack Yep (@Crypto998_) December 5, 2023
The management of the exchange denies the platform’s involvement in any kind of fraud.
In June 2023, Gate.io found itself at the center of another scandal. At one point, the daily withdrawal volume from Gate.io exceeded $130 million—about 10% of the company’s assets. Against this background, rumors spread about problems with liquidity at the exchange.
Representatives of Gate.io then said that legal action would be filed against users who spread rumors about bankruptcy.
Source: Cryptocurrency
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