Crypto exchange Gate.io is under fire as the BRC20 token RATS community launches a boycott movement, accusing the platform of engaging in fake spot transactions. The controversy arose when, between 21:00 and 23:00 UTC+8 on December 4, the RATS trading volume on Gate.io surpassed 880 billion, surpassing the total RATS token supply of 1 trillion.
Community members claim that Sesame Exchange, using the Gate.io platform, manipulated data to execute false transactions, sparking dissatisfaction within the community. Alleged evidence, displayed below, points to Sesame Exchange’s purported use of fake data, prompting a call for unified action to preserve market fairness and transparency—urging users to withdraw all assets stored on Sesame Exchange.
On December 5, 2023, the RATS project community, operating with tokens following the BRC-20 standard, initiated a boycott against Gate.io for alleged manipulation of trading volume. The community accuses the trading platform of holding a significant number of project tokens and engaging in price manipulation activities. Users were urged to refrain from using the exchange and to withdraw all assets.
Gate.io is specifically accused of deliberately manipulating the display data of the RATS token, introducing errors in transaction volume to exploit profits. According to Wu Blockchain, a prominent blockchain news source, the community expressed concern:
“Between 8:00 p.m. and 10:00 p.m. on December 4, 2023 [Vietnam time], the RATS price dropped by 10%, with trading volume on Gate exceeding 880 billion, while the total supply is only 1,000 billion. Gate.io’s wallet address, marked by CoinCarp, is the largest token holder with a rate of 4.7%.”
Gate.io Blocks Communication With RATS Project
User @VT_BNB claimed that during a time of heightened Bitcoin activity, users’ portfolios on Gate.io experienced sudden drops, especially BRC-20 standard tokens such as RATS, ORDI, SATS, etc. The user alleged that the exchange took advantage of a BTC decrease to “exhaust” a substantial amount of token holdings, causing their value to plummet. The user further claimed that the exchange held up to 10% of RATS tokens during profit-taking, contributing to a transaction volume of 984.7 billion.
Following these allegations, the VT_BNB account and the entire RATS project were reportedly blocked by Gate.io’s official communication channel without any explanation or response. The situation has heightened tensions within the crypto community and prompted scrutiny of the firm’s practices.