Gate.io Raises $64 Million by Selling Native Tokens

The crypto exchange has recently raised $64 million in trading fees by selling the native tokens for its upcoming Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term, according to Coindesk.

The sale went on for seven days, and the digital currency can only be used once Gate.io launches its proprietary blockchain.

The Malta-registered digital asset exchange first announced about the sale on April 1, in which it specified that it was going to list 300 million Gatechain Tokens for sale. The exchange also outlined that it aims to launch the Mainnet Mainnet A mainnnet is a term to describe the primary blockchain network that a cryptocurrency project will operate. The mainnet reflects the final product or stage of a cryptocurrency project that can be accessed and used by the general public. This means that cryptocurrency transactions are being broadcasted, verified, and recorded on blockchain.In contrast to mainnet networks exists testnets, which describe the state during which a blockchain protocol or network is not yet up and running on its full c A mainnnet is a term to describe the primary blockchain network that a cryptocurrency project will operate. The mainnet reflects the final product or stage of a cryptocurrency project that can be accessed and used by the general public. This means that cryptocurrency transactions are being broadcasted, verified, and recorded on blockchain.In contrast to mainnet networks exists testnets, which describe the state during which a blockchain protocol or network is not yet up and running on its full c Read this Term of the exchange's proprietary blockchain - Gatechain - in Q4 2019.

“[Gatechain Token] is the base currency of Gatechain's public chain, supporting the infrastructure of the Gatechain public chain,” the exchange noted. “GT is the main network fuel of Gatechain, paying the network transfer fee. Gatechain encourages GT holders to protect the network health through PoS equity mining. Gate.io will also adopt GT as part of its eco.”

On April 14, the exchange revealed that there was a massive demand for its token as the sale was oversubscribed with orders more than $2.9 billion.

In the first phase of the token sale, the exchange has distributed 150 million Gatechain Tokens, raising $64 million as pre-paid trading fees, Marie Tatibouet, chief marketing officer of the exchange, told Coindesk.

High demand for platform tokens

The demand for crypto exchange's native tokens increased drastically over the past few months given the increasing number of initial exchange offering (IEO). Initiated by Binance, other major crypto exchanges including Huobi and Bittrex also opened their own IEO platforms.

Gate.io is also set to jump into the IEO bandwagon as Tatibouet revealed that the exchange would launch a platform similar to Binance Launchpad later this week.

“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,” Tatibouet said.