Silent Multichain team fuels user uncertainty

Silent Multichain team fuels user uncertainty


Multichain’s leadership team’s silence is causing uncertainty for users of the cross-chain protocol with $1.5 billion in total value locked, as rumors circulate about their possible arrest in China and the protocol experiences five days of stuck transactions and multiple cross-chain bridge pathways that are not yet online.

The silence coming from the Multichain’s leadership team is causing further uncertainty for users of the cross-chain protocol with $1.5 billion in total value locked.

The protocol has had 5 days of stuck transactions and it still has numerous cross-chain bridge pathways — Kava, zkSync, Polygon zkEVM — that are not is still online. The 1st purported cause was that this was owing to an upgrade that was getting fixed, but the justification was changed yesterday to an ambigious “force majeure.”

This comes alongside unverified speculation on Twitter platform that the core leadership team may have been arrested in China.

Multichain co- founder DJ Qian, who no longer works with the project, said on Twitter platform today that he requested the present Multichain CEO Zhaojun and its founding partner Xu Guochang to see if they could provide any technical help. And once requested what the situation is with Zhaojun, he replied that he’s “not available yet.”

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In a group Telegram message with the Multichain team, Multichain’s VP of Strategic Partnerships, who goes by Mog, replied that he didn’t know whether the leadership team had been detained by Chinese authorities. Zhaojun did not reply in the group, nor to a direct message through the same app.

On the project’s Discord server and Telegram groups, there have similarly been no updates, with community members informed to wait for further updates.

Meanwhile,  the price of Multichain’s native crypto token MULTI has continued to slide and is now down to $4.98, having declined 23 percent in the last 24 hours.

Projects reacting to the silence

Conflux Network is the latest entity to respond to the situation. It has suspended Multichain’s co-mint privileges as a precaution. This prevents Multichain from minting crypto tokens on its blockchain tech. It also mentioned that it will assist to work with users if there are any losses that arise.

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Yesterday, cryptocurrency financing company HashKey Group moved $250,000 to cryptocurrency exchange Gate.io and Tron founder Justin Sun withdrew 470,000 of the USDD crypto stablecoin from the protocol itself.

The Fantom Foundation likewise withdrew $2.4 Million in liquidity of the protocol’s native MULTI crypto tokens on decentralized exchange SushiSwap. Reports by data from The Block Research, 38 percent of the total-value locked on the Fantom blockchain tech is held within Multichain.



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