Fantoms Daily Bridging Volume Surges 5x Despite Alleged Team Arrest

Fantoms Daily Bridging Volume Surges 5x Despite Alleged Team Arrest


Rumors of the arrest of the Multichain team by Chinese police and the seizure of a wallet with $1.5 billion have hit the Fantom ecosystem, but panic has not yet set in, according to reports.

Speculation have been spreading throughout the cryptoverse that the major blockchain tech bridge Multichain team has been arrested by the Chinese police – with the shockwaves hitting the Fantom (FTM) ecological system softer than expected. 

Per plenty of Twitter accounts, the Chinese community has been reporting the core team members’ arrests, likewise as that law enforcement gained control of a wallet with some $1.5 Billion – &1.7 Billion in it. 

“Alfred Xu, the co- founder of Multichain, stated in the official Telegram community that the present team is healthy, the main business is normal, the route will be restored automatically, and the team is working normally,” Gwei Research wrote.  

The Multichain team did not provide further clarification. On May 24, they shared that “while most of the cross-chain routes of Multichain protocol are functioning well, some of the cross-chain routes are unavailable owing to force majeure, and the time for service to resume is unknown.”

Force majeure is a French term that implies “greater force” or an “act of God” – an event outside one’s control and accountability. 

Multichain also mentioned that it would compensate influenced users.

That stated, it is as of now not clear if the reports are accurate.

In the meantime, researcher Defi Ignas noted a 520 percent spike in daily bridged volume, adding that deposits had more than withdrawals by $18 Million dollars following the rumors. 

The fear, uncertainty, and doubt (FUD) “resulted in a 5x boost in daily bridging volume,” said the researcher. 

Multichain is a major bridge ( was known Anyswap before the 2021 exploit) that enables interaction betwixt plenty of major blockchains teck, including Ethereum, Polygon, Avalanche, and BNB Chain.

Per DeFiLlama, it as of now has a $1.5 Billion total value locked (TVL), while multichain.org shows $1.75 billion.

It is not surprising that related corporations would move right away: it’s worth noting that, Binance said it temporarily stopped deposits for plenty of crypto tokens “while we await clarity from the Multichain team.” Plenty of hours thereafter, it resumed deposits for FTM.

The Fantom Case

Prominent Chinese journalist Colin Wu pointed out that the Fantom network accounts for the highest proportion of Multichain’s TVL, and that, this is why, Fantom has “large exposure.” 

Fantom’s share in TVL is $643.45 Million, with Ethereum’s $312.21 Million in Second place, reports by multichain.org.

Per research company Thanefield Capital, 35 percent of Fantom’s assets are announced by Multichain, including 80 percent of its total crypto stablecoin market capitalization. 

Regardless of how exposed Fantom is and that one would expect to see major outflows, plenty of researchers stated that there is not many of panic to see there.

“The clearest sign of panic is the Multichain LPs on Fantom,” Decentralized Finance Ignas said, citing DeFiLlama data. A total of $33 Million was withdrawn by LPs from Fantom by the time of the tweet, with only $1.7 Million in deposits.

Fantom did not clarify the situation either; it only tweeted on Thursday that the Multichain bridge with Fantom “is operating as normal.”

At the time of publication, FTM was unchanged in the previous 24 hours and was down 11 percent in the previous week, per CoinGecko. It was currently worth $0.329. 

FTM 30-day price chart:

Fantoms Daily Bridging Volume Surges 5x Despite Alleged Team Arrest
Source: coingecko.com

Moving funds

There were additional reports of funds being moved by alleged team members, while the MULTI price took the hit.

And that’s not all. Blockchain Tech analytics company Arkham Intelligence stated that major MULTI crypto token holders moved some $3 Million in just 24 hours.

Still, Decentralized Finance Ignas claimed that “perhaps the worst is is still to come, but on-chain data doesn’t reveal a substantial outflow of capital.”

That stated, the researcher did note the lack of communication from the team, calling it “worrying.” 

Mutichain’s MULTI coin was currently worth $3.9 on Friday morning (UTC time). It dropped 20 percent in a day and 50 percent in a week. 

MULTI 30-day price chart:

Fantoms Daily Bridging Volume Surges 5x Despite Alleged Team Arrest
Source: coingecko.com

Learn more: 

– Growth in Digital Assets Trade Puts the Spotlight on Blockchain Tech Bridge Security Risks
– Multichain Future Brings Numerous Competitors to Bitcoin (BTC) & Ethereum (ETH) – Analysts

– The Future of Web 3.0 Will Be Multichain and Chainless at the Same Time
– A Multichain World Is Key to the Success of Web 3.0 and the Metaverse

– What is Blockchain?
– How to Use Binance Crypto exchange Smart Chain (BSC) with MetaMask



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