A rug-pull kind of incident at the Multichain protocol has sent shockwaves across the cryptocurrency market A staggering $1.8 Billion in multichain wallets have been locked and speculation have it that the Chinese authorities have arrested Multichain team members with law enforcement taking control over the wallets.
Of the total $1.8 Billion in total-value-locked (TVL) of Multichain, the Fantom blockchain tech remains the most impacted with 36.7%. Currently, the total assets on the Fantom blockchain tech are $1.66 Billion and nearly 40 percent of these assets have been wrapped on Multichain.
As we know, Multichain is one of the major blockchain tech bridges in the cryptocurrency space. Consequently, it eases the swapping of crypto tokens across numerous blockchains teck. Top platforms such as Binance Crypto exchange Chain, Polygon, Avalanche (AVAX), and Ethereum (ETH) have been using the Multichain bridge.
Multichain is likewise the official cross-chain bridge for the Fantom, a blockchain tech supporting smart contracts and powered by native FTM crypto tokens. Cryptocurrency journalist Colin Wu notes: “the main crypto stablecoin on Fantom is 191 Million, USDC and 82 Million USDT assets are basically announced by Multichain”.
Fantom Operating As Normal
As the concerns over the Multichain crisis spread across the cryptocurrency market, Fantom took it to Twitter stating that its Multchain Bridge is operating as normal.
Update: The @MultichainOrg bridge with Fantom is operating as normal.
— Fantom Foundation (@FantomFDN) May 25, 2023
This assurance has prevented any major price correction in the native FTM crypto token which is as of now trading 0.75 percent down at a price of $0.33 and a market capitalization of $925 million.
As a matter of caution following the Multichain situation, the Fantom Foundation has withdrawn its funds from the liquidity pools on Sushiswap. As of May 24, the foundation pulled out $2.4 Million of MULTI, which is the native crypto token of the Multichain protocol.
Speaking to The Block, Fantom Foundation Director Andre Cronje said: “No point to LP at times of uncertainty. You can see in the wallet the funds haven’t been sold, as soon as Multichain is able to release a statement around this and clear it up we will LP again”.
