Gate.io Raises $64 Million For The Launch Of Its New Exchange Cryptocurrency
Crypto exchange Gate.io managed to mince $64 million worth of crypto assets in seven days, directed at its own exchange cryptocurrency that won’t be launched on a blockchain for at least six months.
Gate.io, one of the oldest Chinese exchanges has claimed in a blog posted on Monday that over the last week, the firm has been heavily oversubscribed with orders totaling $2.99 billion for the so-called Gate Points, which can be used for offsetting trading fees on the platform.
Furthermore, the Gate Point will entitle the holder to receive 2.5 Gate Tokens (GT), i.e. the native cryptocurrency of Gatechain, the exchange’s yet-to-be-launched proprietary blockchain. As per Gate.io, the network will go live in the fourth quarter.
As per an earlier blog post published on April 1, the first phase of the Gate Points sale started on April 8 and lasted for seven days. As for Gate’s fees it is charged paid in tether (USDT), the U.S. dollar-pegged stablecoin, one Gate Point is worth 1 USDT in reduced fees. The points were purchasable with bitcoin, tether, ether, EOS, or the tokens of rival exchanges Binance (BNB) or Huobi (HT).
The chief marketing officer of Gate.io, Marie Tatibouet, stated in an interview with CoinDesk, that the exchange distributed 150 million GTs to successful Gate Point subscribers during the first phase. In return, a prepaid trading fee of $64 million was collected (The initial reward ratio of 1 Gate Point for 2.5 GT depreciated by three percent every day during the first phase.)
Founded in 2013, under the nameby CEO Lin Han, the exchange suffered a hack in 2015 and lost over 7,000 bitcoin from its cold wallets. In 2017, the Chinese central bank’s ban on initial coin offerings (ICOs) and fiat-to-crypto spot trading following which closed its domain and rebranded to and dropped fiat trading. The exchange shifted its focus to crypto-to-crypto and Chinese yuan over-the-counter (OTC) trading.
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