2023-05-26 13:16:04
The current situation around the blockchain platform, Multichain, has been generating an increase in fear, uncertainty and doubt in the world of cryptocurrencies. However, the recent turmoil within the community stems from a tweet showing a possible basis for a rug-pull. According to the information shared in the tweet, it has been revealed that Multichain has almost $1.8 billion in different coins on different chains..
Multichain has $1.8 Billion in locked assets under control, across several chains, not just Fantom. It will impact prices on all assets, across all chains if they did indeed rug, which I suspect is the case. pic.twitter.com/rqZPqvWlRC
— TruthLabs ???? (@BoringSleuth) May 25, 2023
If Multichain decides to withdraw the funds, similar to a rug-pull, the overall effect on the market would be increasingly catastrophic.
Analysts suggest that Multichain’s overall position in the market, coupled with the uncertainty surrounding internal affairs and the team’s plans, might set the stage for a UST-like rug-pullwhich continues to affect the broader cryptocurrency market to date.
The entire assumption that Multichain seeks to defraud its customers stems from the announcement of the unavailability of some of its cross-chain routes. The protocol mentioned that it was working to restore them as soon as possible, but did not provide an exact timeframe..
However, Multichain promised to reimburse users for all possible losses, although many believe that the promise will not be fulfilled. At the same time, considering how the company is now under the radar, it would be relatively easy to keep track of the funds under its control. The MULTI token has suffered a staggering 21.98% drop, bringing the trading price to approximately $3.82. At the same time, the total market capitalization of the token is currently $55 million..
FANTOM IS THE MOST AFFECTED IN THE MULTICHAIN SCANDAL
The current situation with Multichain has sent chills down the spine of the cryptocurrency market, and over $1.8 billion in assets have been frozen. Of the total value locked, the Fantom blockchain is the most affected with almost 36.7%. Currently, the total assets on the Fantom blockchain represent $1.66 billion, with more than 40% involved in the Multichain.
Multichain is one of the largest blockchain bridges in the cryptocurrency space and makes it easy to trade tokens on different exchanges. Similarly, Multichain also serves as the official cross-bridge for Fantom. The company has issued a total of 191 million USDC tokens and 82 million USDT tokens on the Fantom blockchain..
Fantom Foundation director Andre Cronje said:
“There is no point in being a liquidity provider in times of uncertainty. You can see on the wallet that the funds have not been sold, as soon as Multichain can issue a statement on that and clear this up, we will go back to being a liquidity provider.”
Following the uncertainty around Multichain, the Fantom Foundation has withdrawn all funds from its liquidity pools on Sushiswap. Until now, the foundation has withdrawn MULTI tokens for the value of $2.4 million.
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