It is reported that after Gate launched BRC-20 RATS, it played a trick and made some fake token data transactions, which was immediately seen through by the community. In the two hours from 21:00 to 23:00 on December 4, the RATS trading volume of Gate Exchange surged to a staggering 880 billion. However, the careful community found that the address marked as Gate by CoinCarp only held about 47 billion RATS, which is a drop in the bucket compared to the total 1 trillion RATS. #rats
After hearing the news, Gate officials responded quickly, saying that this phenomenon was purely due to the excessive market fluctuations that night, and some quantitative institutional users' trading strategies went wrong, and it had nothing to do with their platform operations. At the same time, they also released a snapshot of 100% of the BRC20 token reserves to prove their innocence.
A quantitative trader who used to work in an exchange said that Gate’s response was just a way of passing the buck. He said: “External quantitative institutions can only provide high liquidity, and they cannot improve the data, unless the proprietary team within the exchange is placing fake orders. It is normal for the market-making team within the exchange to place fake orders.”
In response to Gate’s behavior, the RATS community launched a campaign to withdraw tokens from Gate. This really feels like a battle between retail investors and Wall Street.
In the two hours from 9:00 pm to 11:00 pm on December 4, the price of RATS on the Gate platform fell by 10% like a roller coaster, but the trading volume soared to an astonishing 880 billion. Let's take a look at Bitget during the same period. Although it is also a popular exchange, its trading volume in those two hours was only 1.1 billion, which is nothing compared to Gate.
This data fabrication is too outrageous, isn’t it? Could it be that Gate wants to buy retail investors’ spot stocks at a low price in this way?
In fact, the transactions between retail investors and exchanges are, to put it bluntly, a game of data. Exchanges can manipulate data at will, such as using a large amount of fake buying data to push up the price of a coin, or using fake selling data to knock down the price of a coin. In this way, they can harvest the chips in the hands of retail investors at a lower price.
This kind of operation is not uncommon, especially when new coins are listed on exchanges.
However, such blatant data fraud as Gate is really infuriating! Members of the RATS community have come out to protest and call on everyone to withdraw their tokens from Gate. A vote was even launched in the community to have Gate delist RATS, and more than 90% of the votes have been in favor of delisting. It seems that no one wants to play this tricky game with Gate anymore!
Why does the Rat Community ask Gate to remove RATS?
People in the community say that this will lead to the "death" of a token, or even the "collapse" of an ecosystem. Because exchanges keep dumping and manipulating prices, people lose confidence in the tokens. The most important thing about BRC 20 tokens is that they are launched fairly without manipulation by the project party. Gate's actions are obviously against the original intention of the BRC 20 ecosystem.
During this storm, there were also reports that Gate could not withdraw money, but it was later confirmed that withdrawals on the Gate platform were still normal.
However, a quantitative trader who used to work in an exchange said that it is a common phenomenon for exchanges to inflate volume. An industry insider said, "It is a common phenomenon for exchange robots to inflate volume, and it is inaccurate to judge the data by trading volume. The BRC20 ecological gate actually made a great contribution. Without inflation, how can it attract large platforms to go online? The purpose of the exchange is to earn handling fees, and large platforms are more likely to go online only when they see this huge volume of transactions."