Multichain’s current upgrade is taking longer than predicted, causing delays in their transactions.
The Fantom Foundation – the team developing the Fantom blockchain tech – removed millions of dollars in liquidity from a trading pool for the native crypto token of Multichain on Wednesday, compounding concerns over the cross-chain bridging protocol’s stability.
Reports by Etherscan, a wallet controlled by the foundation removed nearly 450,000 of MULTI and 1,363 ether from a liquidity pool on decentralized exchange SushiSwap. On-chain researcher Lookonchain 1st flagged the movement. The Fantom Foundation did not instantly respond to a request for comment.
The liquidity removal comes as users of Multichain report days of delays in withdrawing their cryptocurrency assets from the protocol, which helps them move assets betwixt the Fantom and Ethereum (ETH) ecological systems. Multichain developers notified the community of a “longer than expected” upgrade on May 21. Multichain representatives did not instantly respond to a request for comment.
Although while Fantom Foundation is still holding onto its MULTI, Nansen reports that other top holders have been sending Multichain’s governance crypto token to exchanges, including one whale with 494,200 tokens ($2.75 million) likewise as digital investment company Hashkey Capital, whose position was worth $221,000 at the time.
The major on-chain moves correspond with a plummet in MULTI’s trading price. At the time of publication it had fallen over 28.5 percent in the past 24 hours, down to $5.04.