Fantom’s DEX, SpiritSwap, Ceases Operations after Multichain Hack

SpiritSwap, a decentralized exchange (DEX) on Fantom, will cease operations from Sep.1

SpiritSwap, a popular decentralized exchange (DEX) on the Fantom blockchain, has announced that it will be shutting down on September 1. The decision to cease operations comes after the DEX’s treasury was depleted by the recent Multichain hack, leaving the team unable to fund essential operations. The SpiritSwap team is currently looking for a successor to take over the platform, and if a transfer of ownership doesn’t happen by the deadline, the DEX will be forced to close down. The team intends to assist the successor during the transition period.

Key Points:

SpiritSwap will cease operations on September 1 due to depleted treasury after the Multichain hack.
The DEX is looking for a successor to take over the platform.
If no transfer of ownership occurs, SpiritSwap will potentially close down.
SPIRIT token has seen a 42% decline in the last 24 hours.
Other projects within the Fantom ecosystem are also facing closure due to the fallout of the Multichain hack.

SpiritSwap, once a thriving DEX with a total value locked (TVL) of $374 million, now only has $2.87 million locked in. This decline in TVL has been exacerbated by the Multichain incident. As a result, the DEX’s native token, SPIRIT, has experienced a significant drop in value.

The Multichain hack, which took place in early July, resulted in the redirection of assets from MPC addresses to unfamiliar destinations. This led to the closure of Multichain and the subsequent shutdown of other projects within the Fantom ecosystem, including Geist Finance, Fantom’s lending protocol.

Hot Take:

The closure of SpiritSwap is a significant blow to the Fantom ecosystem, as the DEX was one of the pioneers on the platform. The Multichain hack has had far-reaching consequences, causing not only financial losses but also the shutdown of various projects. It highlights the importance of security in the crypto space and the need for constant vigilance to protect user funds.