Over the course of just seven days, the Gate.io cryptocurrency exchange raised $ 64 million in Bitcoin and other cryptocurrencies, intending to direct these funds to launch the internal token GT. It is reported by CoinDesk.
Based on the Cayman Islands, the Exchange announced on Monday that the originally scheduled subscription amount for the so-called Gate Points was significantly exceeded, estimating the total amount of bids at $ 2.99 billion.
Gate Points are designed to reduce commissions for trade transactions, in addition, each Gate Point can be exchanged for 2.5 Gate Tokens (GT), the native token of the Gatechain's own blockchain. Its launch should take place in the IV quarter of 2019.
According to a report on the exchange website, the first phase of the sale of Gate Points, which could be purchased for BTC, Tether USDT, ETH, EOS and tokens of the competing Binance (BNB) and Huobi (HT) exchanges, started on April 8 and lasted seven days.
Marie Tatibouet, chief marketing officer for Gate.io, clarified that during this period, 150 million GT tokens were distributed to Gate Point subscribers, while the exchange received $ 64 million in prepaid commissions.
The demand is indeed correlated with the overall market condition, when exchange tokens have jumped by 150 percent in Q1. Thus retail investors’ anticipation for these tokens to yield a high rate of return is still positive.
Chief marketing officer, Gate.io
Gate.io’s plans also include launching a decentralized exchange. With the help of the GT token, users will be able to pay transactionand DEX listing fees and attract investments. Miners will receive a token as a reward.
The initial volume of token emissions will be 300 million tokens, and the limit of 1 billion tokens will be reached within 10 years. Part of the tokens will be distributed through various motivation programs for community members, and some - when investors acquire points, which will allow, among other things, lower commissions on the main platform.
Gate.io is the successor of one of the oldest cryptocurrency exchanges in China, Bter, which in October 2017 as a result of the policies of local authorities ceased operation.