Multichain Token Plunges By 30%

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A cross-chain routing protocol called Multichain (MULTI) experienced a 30% decline in its token in just one day on May 24, 2023.  

The change, according to Cointelegraph, took place after consumers were alerted that a backend node upgrade had caused a delay in the receipt of their multichain payments. 

According to evidence provided by Cointelegraph, a wallet address affiliated with the Fantom Foundation, a layer-1 blockchain developer, cleared 449,740 MULTI from liquidity on the decentralized exchange SushiSwap. 

Multichain Token Takes A Drastic Hit

According to rumors, the Chinese authorities have detained the multichain team and have 1.5 billion dollars in contract funds. Additionally, according to Cointelegraph, Multichain protocol’s total value locked (TVL) surpassed $1.59 billion in value and reached $10.5 billion in TVL in 2022.

Following days of blocked transactions that raised doubt about the Multichain system, cryptocurrency platform Binance halted deposits for 10 bridging tokens on May 25. Polkastarter (POLS), Alpaca Finance (ALPACA), Travala.com (AVA), Spell (SPELL), Fantom (FTM), Alchemy (ACH), Beefy (BIFI), SuperVerse (SUPER), Harvest Finance (FARM), and DeXe (DEXE) are among the token pairings that are affected. 

Holders of bridged tokens across the BNB Smart Chain, Fantom, Ethereum, and Avalanche blockchain networks will be impacted by the change. Withdrawals of these tokens and deposits on other networks are still possible, according to Binance’s deposit website.

Uncertainty has been heightened by Multichain’s (MULTI) reticence over the ongoing problems. Transactions on the system have been slowed down by several cross-chain bridges, according to Cointelegraph.

Multichain stated in a tweet from May 24 that some cross-chain routes were inaccessible “due to force majeure,” adding that it was unknown when service would resume. It was the protocol’s final message posted on the social media site. Previously, a backend node upgrade was blamed for the delay.

Not just Binance but other businesses also took action during the mysterious delay. According to reports, a wallet account connected to the Fantom Foundation took 449,740 MULTI ($2.4 million) from SushiSwap’s liquidity. On May 24, the blockchain analytics company Lookonchain also disclosed MULTI outflows associated with smart money accounts totaling $3 million.