Gate.io crypto exchange funding new cryptocurrency with $64 million

gate.io
Gate.io crypto exchange funding new cryptocurrency with $64 million
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Gate.io, a cryptocurrency exchange, just raised $64 million for its new cryptocurrency.

Entering the cryptosphere

As one of the oldest Chinese crypto exchanges in existence, the project’s asset will serve similarly to Binance’s Binance Coin (BNB) in that the asset is there to ease the investment process on its respective platform. The cryptocurrency will is called Gatechain Token (GT), and so the exchange has raised $64 million to fund it.

The group recently said that there were tons of backers looking to jump into the asset. Gate Token will help pay for transaction fees just like BNB. Despite this investor interest, the project won’t be live until Q4.

In an interview with CoinDesk, Gate.io Chief Marketing Officer Marie Tatibouet revealed that it sent out 150 million tokens during the first phase of its fundraiser. This period went from April 8 to April 14.

Making it in this world

Gate.io came to back in 2013, but was first Bter.com. However, the platform was hacked two years later, and lost around 7,000 Bitcoin (BTC).

This project chose a rather interesting route of funding. Most cryptocurrencies start via an initial coin offering (ICO), but this one chose otherwise. Also, according to Gate.io’s blog, there is a scam ERC-20 GT out there. This is a false asset, as the real token is only available on its exchange.

As for what this asset stands for, the post answers in detail:

“Other than the DEX it provides, Gatechain creatively solves two safety issues, including 1) how to recover stolen digital assets and 2) how to find lost private keys. These two issues we believe are not solved by other public chains. We would reveal more details when the Gatechain Mainnet is launched. We would also make it open source to benefit users and the community.”

The token will be listed for trading after its second issuing. From there, GT will be available to trade on the exchange.

About Max Moeller

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Cryptocurrency and games writer. Looking to the future by studying how these two industries can blend. LinkedIn: https://www.linkedin.com/in/maxwell-moeller-912044b4/