SINGAPORE / ACCESSWIRE / June 10, 2021 / Global digital asset alternate Gate.io not too long ago introduced that it labored on numerous steps to assist their 6 million customers and safeguard their holdings as a response to the 519 black swan event.
On May 19, 2021 the cryptocurrency market plummeted, inflicting concern for cryptocurrency merchants throughout the world. To assist their customers, particularly these with excellent CryptoLoans, Gate.io extended the liquidation time from May 19 to May 20 to give customers with excellent CryptoLoans sufficient time to both repay their loans or add extra collateral so as to keep away from liquidation of their loans, basically permitting a margin enhance and lengthening compensation occasions.
Review of the incident
On May 19, 2021, the worth of most cryptocurrencies plummeted. As market situations turned excessive, transaction quantity rose, inflicting community congestion on many platforms inflicting stalls and downtime on some. Many customers anxious about liquidation on excellent crypto loans as the worth of their collateral decreased, closing in on the liquidation threshold.
Why Gate.io Extended Repayment
As May nineteenth was thought-about a black swan occasion in the world cryptocurrency market, many exchanges promptly determined to liquidate holdings for customers so as to safeguard their platforms and liquidity as customers’ collateral shrank.
“Over the final 8 years, Gate.io has constructed a relationship of belief and dependability with our clients and determined to stand by their facet as an alternative. We promptly allowed for a margin enhance and prolonged the compensation time for loans to ensure that customers to both repay their loans or enhance collateral, as an alternative of being liquidated. As one among the main crypto exchanges in the world, we stay dedicated to our clients, even during times of excessive volatility in the crypto market,” Marie Tatibouet, CMO at Gate.io mentioned in a press release.
Safeguarding Users’ Holdings
Gate.io acknowledged that it processed in extra of $4 billion in transactional quantity in a brief period of time, regardless of a rise in buying and selling quantity, now we have remained absolutely operational and elevated our buying and selling capability, whilst we cater for almost 6 million customers. During the May 19 market crash, the alternate acted swiftly and prolonged the compensation occasions for customers by 17 hours, enabling a margin enhance and serving to hundreds of customers to recuperate almost $60 million in losses as the market plummeted.
Gate.io allows a brand new era of worldwide merchants with the instruments to entry the revolutionary age of cryptocurrencies. The “Gate ecosystem” consists of Gate.io, Wallet.io, HipoDeFi and GateChain. Gate.io allows blockchain fanatics to commerce and retailer belongings in over 470 of the main cryptocurrencies for over 6 million customers from over 150 international locations. It is a one-stop-shop for spot, margin buying and selling, futures, perpetual contracts, staking, C2C loans, choices and DeFi.
Diksha Sharma, Head of Comms
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