SINGAPORE, June 10, 2021 (Newswire.com) - Global digital asset exchange Gate.io recently announced that it worked on various steps to support their 6 million users and safeguard their holdings as a response to the 519 black swan event.
On May 19, 2021 the cryptocurrency market plummeted, causing concern for cryptocurrency traders across the world. To support their users, especially those with outstanding CryptoLoans, Gate.io extended the liquidation time from May 19 to May 20 to give users with outstanding CryptoLoans enough time to either repay their loans or add additional collateral in order to avoid liquidation of their loans, essentially allowing a margin increase and extending repayment times.
Review of the incident
On May 19, 2021, the value of most cryptocurrencies plummeted. As market conditions turned extreme, transaction volume rose, causing network congestion on many platforms causing stalls and downtime on some. Many users worried about liquidation on outstanding crypto loans as the value of their collateral decreased, closing in on the liquidation threshold.
Why Gate.io Extended Repayment
As May 19th was considered a black swan event in the global cryptocurrency market, many exchanges promptly decided to liquidate holdings for users in order to safeguard their platforms and liquidity as users' collateral shrank.
"Over the last 8 years, Gate.io has built a relationship of trust and dependability with our customers and decided to stand by their side instead. We promptly allowed for a margin increase and extended the repayment time for loans in order for users to either repay their loans or increase collateral, instead of being liquidated. As one of the leading crypto exchanges in the world, we remain committed to our customers, even during periods of high volatility in the crypto market," Marie Tatibouet, CMO at Gate.io said in a statement.
Safeguarding Users' Holdings
Gate.io stated that it processed in excess of $4 billion in transactional volume in a short amount of time, despite an increase in trading volume, we have remained fully operational and increased our trading capacity, even as we cater for nearly 6 million users. During the May 19 market crash, the exchange acted swiftly and extended the repayment times for users by 17 hours, enabling a margin increase and helping thousands of users to recover nearly $60 million in losses as the market plummeted.
Gate.io enables a new generation of global traders with the tools to access the revolutionary age of cryptocurrencies. The "Gate ecosystem" consists of Gate.io, Wallet.io, HipoDeFi and GateChain. Gate.io enables blockchain enthusiasts to trade and store assets in over 470 of the leading cryptocurrencies for over 6 million users from over 150 countries. It is a one-stop-shop for spot, margin trading, futures, perpetual contracts, staking, C2C loans, options and DeFi.
Diksha Sharma, Head of Comms