Fantom’s TVL and Price Decline Following Multichain’s Problems
Fantom, a smart contract platform, experienced a significant decline in activity and value locked after Multichain faced issues and ultimately shut down its operations. Here are the key points:
- Fantom’s total value locked (TVL) dropped from over $364 million to about $70 million.
- The price of Fantom’s native coin, FTM, declined from $0.41 to $0.28.
- The co-founder of Fantom, Andre Cronje, expressed his disappointment and mentioned having trust issues with Multichain’s team.
- Multichain’s CEO was arrested in May, leading to the shutdown of operations and the exploitation of over $125 million worth of cryptocurrencies from multiple wallets.
- The exploit also resulted in Geist Finance, a lending protocol, permanently shutting down due to losses.
Fantom is now working on recovering the assets and exploring options with stablecoin issuers Circle and Tether. The platform is also reviewing rollups for native bridge infrastructure.
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