The broad confusion surrounding the Multichain protocol has continued to stir more Fear, Uncertainty and Doubt (FUD) in the digital currency ecological system. The most recent uproar in the community came from the tweet from self-proclaimed cryptocurrency market investigator, @BoringSleuth which showed the capacity basis for a rug-pull.
Multichain Holds $1.8 Billion Cryptocurrency Assets
Reports by Boring Sleuth, Multichain holds as much as $1.8 Billion in different digital currencies spread across different chains as of now. The sleuth posits that should Multichain cause a move to cart away with all of the funds as in a rug-pull, which seems to be the case, the cataclysmic effect in the market could be resounding.
Commentators have started projecting that the position of Multichain in the market and the uncertainty that comes with the team’s internal affairs and plans can fuel a UST-like rugpull which the industry is still feeling its impact lately.
The 1st Red Flags With Multichain
The whole assumption that the Multichain protocol is making moves to defraud their users came from the notice that some of its cross-chain routes were unavailable owing to force majeure. The protocol stated at the time that it was working on getting the chains back online but has no specific timeline as to when normal operations will resume.
The protocol promised to refund users of any form of losses they can potentially have incurred owing to the event, a promise most community members believe won’t be be kept.
Coming off with the understanding that the industry has placed witness to plenty of scams and rugpulls, exchanges started taking the necessary precaution to guard investors. As already stated earlier by Coingape, one of the most proactive moves regarding this case was initiated by Binance Crypto exchange exchange which blocked deposits as Multichain CEO remains nowhere to be found.
The broader cryptocurrency ecological system is remaining on high warning with numerous commentators already spreading the FUD so as to allow investors to guard themselves. With the leaders of the Multichain protocol now under the radar, it may become very easy to keep track of the funds under the firm’s control and perhaps, help cushion the impact of any potential rugpull that may manifest as a major cryptocurrency crash.
Multichain crypto token ($MULTI) is down 17.32 percent at the time of publication to $4.43.
