On September 15th, the leadership team of project PolyPlay (PLAY) black-listed Gate.io’s PLAY address, leaving the community without the ability to deposit or withdraw PLAY tokens from the Gate platform and interfering with fair functioning of the crypto markets. As a result of PolyPlay’s recklessly authoritative actions and in order to protect the community, Gate.io has suspended trading and will be delisting PLAY.

Users are recommended to withdraw PLAY as soon as possible. Any users who are unable to withdraw their rightful PLAY tokens will be compensated based on the 24-hour average price before the trading suspension.
Integrity is one of Gate’s most important principles, protecting the community’s interest and the fairness of markets is at our core. Gate condemns PolyPlay’s manipulative and abusive actions towards the community, our employees, and the fairness of markets.
Situation details
During August, Gate.io and PolyPlay reached an agreement in which PolyPlay would provide PLAY tokens for Gate to distribute to the community throughout a variety of promotional campaigns and activities. To date, Gate planned the following promotions and corresponding reward distributions
1. Listing vote activity - September 2 & 3 – 495 PLAY tokens distributed: In this activity, users were encouraged to vote for the potential listing of PLAY in the Gate platform. As reward for participation in the event, 495 PLAY tokens were distributed to 5,240 eligible participants (on average, fewer than 1 PLAY token per user) on September 3. Further details regarding the event and participation where announced in the following page https://www.gate.io/en/article/22268.
2. Deposit activity – 295 partially distributed PLAY tokens: For this activity, Gate set aside 295 PLAY tokens to be distributed among 600 potential activity participants as they participated in the activity.
3. Twitter event – 150 still undistributed PLAY tokens: This event was to have 10 winners selected at random, these rewards remain in Gate’s possession and have yet to be distributed
4. AMA event prizes – 100 still undistributed PLAY tokens: This event was for giveaways to attendees of the AMA event.
5. Trading competition – 7 days starting September 7th – 2,225 PLAY token prize pool: 200 participants of the trading contest would receive a portion of the prize pool. Prizes were distributed on September 18th (After Gate’s addresses were black-listed). More details in announcement https://www.gate.io/en/article/22333
6. AMM Liquidity pool – Starting September 7th - 1,884 PLAY tokens allocated and partially distributed: Rewards were to be distributed linearly in a period of 2 months to AMM liquidity pool participants. As of September 18th ~282 PLAY tokens had been distributed in total
7. PLAY Tokens still in reserve for future activities – Remaining tokens

Despite Gate’s efforts in planning and uting all of these activities, on September 7th, PolyPlay began accusing Gate of misuse of the funds provided for promotional activities, claiming that the reward distributions caused a sell-off (It is important to note that during this time period, there was a significant correction occurring simultaneously across the crypto markets). Although our Business Development team held constant communication and was highly attentive to PolyPlay’s inquiries, the project insisted in making a variety of highly emotional and unreasonable complaints while changing the content of the accusations multiple times (swinging from accusing Gate of selling-off PLAY tokens on decentralized exchanges to flooding the market with too many rewards, among others). As a result of a decline in PLAY’s price (which occurred at the same time as a significant correction was happening across the crypto markets) PolyPlay proceeded to use their unjustified accusations as an excuse to block any PLAY tokens from being withdrawn or deposited to Gate.io by black-listing Gate’s address, thus artificially and intentionally interfering with fair market activity.
In a further unacceptably malicious move, PolyPlay posted personal information about our employees on social media while encouraging people to contact them and threaten them.
Finally, even with Gate’s addresses being black-listed and PLAY markets being halted on Gate.io, during the following market correction of September 19-21, (Bitcoin down from $47k to $40k) the price of PLAY continued to decrease, this time leaving no room for PolyPlay to use withdrawals or activity on Gate.io as a plausible reason.





PolyPlay’s claims
In order to justify their actions of black-listing of Gate’s wallets, PolyPlay made the following claims:

Claim 1:
As the crypto market correction of September 6-8 was occurring (Bitcoin price down from $52k to $46k) PolyPlay was quick to conclude and to blame Gate initially of conducting the withdrawals ourselves, and later on changing their story to Gate distributing too many tokens as marketing promotion rewards, leading to sell pressure.
Explanation for Claim 1:
The following are the withdrawals mentioned by PolyPlay along with Gate’s investigation of the users’ activity
Withdrawal 1 – 1224 PLAY tokens
-Investigation: User deposited 1247 PLAY tokens before September 4th:
-Hash: 0x09a***b3b9a
Withdrawal 2 – 263 PLAY tokens
-Investigation: User bought the respective PLAY tokens on the Gate platform before proceeding to withdraw them
-Hash: 0xeba***65a7a
Withdrawal 3 – 318 PLAY tokens
-Investigation: User bought the respective PLAY tokens from the Gate platform at a price of ~$10.3
-Hash: 0x1e1***da9db
Withdrawal 4 – 500 PLAY tokens
-Investigation: User bought the respective PLAY tokens on the Gate platform before proceeding to withdraw them
-Hash: 0x87c***5eb89
Withdrawals 5 and 6 – 555 and 499 PLAY tokens respectively
-Investigation: These withdrawals were made by the same user who made an initial deposit of 2607 PLAY tokens around September 3rd and was an active trader in the PLAY market until September 15th:
-Hash: 0xdb9***f91e4
And 0x608***9965b
Withdrawal 7 – 289 PLAY tokens
-Investigation: User deposited over 360 PLAY tokens, traded actively for a few days and then proceeded to withdraw
-Hash: 0xad4***d3c8a

Upon investigation by Gate, it was observed that these were normal withdrawals made by active Gate users from different countries, of which none had received rewards from promotional activities.
Upon reviewing Gate’s central wallet, it can also be observed that the net balance of PLAY tokens on Gate’s wallet has always remained above the initial PLAY tokens received for promotion rewards in August.



Claim 2
The AMM pool rewards for PLAY were too high, thus issuing too many PLAY tokens and contributing to sell pressure.
Explanation for claim 2
Gate has been providing AMM pools for many coins recently. The AMM pools have high rewards in general in order to incentivize users to provide liquidity to the market.
Gate.io AMM pools are an innovative product in which trades will be matched with the better one of either the liquidity pool or the regular order book. Trading fees generated will then either be credited to the liquidity pool or the order books depending on which one matched the trade. Any fees generated by AMM pool are distributed pro rata to users depending on their share of the AMM pool. With or without the promotional tokens provided by PolyPlay as additional incentive, the initial days of Gate.io AMM pools tend to have very attractive rewards since the total size of the pool is initially relatively small and individual contributions are a higher share of the total.

Conclusion
The leadership team of project PolyPlay used centralized control privileges to interfere with fair crypto market functioning utilizing desperate and malicious accusations against Gate.io and its employees to justify their actions. Gate.io condemns the actions of PolyPlay and will be delisting PLAY as a result


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Gate.io Team

Sep 29, 2021