Cross-chain disruptions – The rise of DeFi saw a strong demand for cross-chain bridges. These tools are crucial for transferring funds between different blockchains. The Multichain protocol has recently encountered difficulties, which have been exacerbated by a massive withdrawal from the Fantom Foundation.
Fantom Foundation Responds to Uncertainty Around Multichain
Multichain is a cross-chain bridge protocol that connects more than 50 different blockchains. 24 never, a major problem has been reported. Many users reported that their transactions were not finalized.
Quickly, the Multichain teams made it known that this delay was due to a protocol update.
“The majority of roads are operating normally. Some are temporarily suspended. Affected transactions will be completed after the update. »
However, this did not prevent the proliferation of rumors on social networks.
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449,000 MULTI withdrawn by the Fantom Foundation
Indeed, on the same day, an address linked to the Fantom Foundation withdrew 449,740 MULTI tokensor about $2.4 million, from SushiSwap.
Unsurprisingly, this massive withdrawal has fueled rumors of failure at Multichain. As speculation swelled on social media, chain reactions were set off.
Thus, in the space of 48 hours, the price of MULTI has fallen by almost half, going from $7 on May 24 in the morning to $3.89 at the time of writing these lines.
The Fantom Foundation explains
Faced with growing rumours, and incomprehension vis-à-vis its massive withdrawal, the Fantom Foundation came out of the silence.
Thus, the Director of the Fantom Foundation, Andre Cronjetold our colleagues at TheBlock that the Foundation has stopped providing liquidity with its MULTI tokens on SushiSwap due to the uncertainty surrounding Multichain.
“No interest in providing liquidity in times of uncertainty. You can see in the wallet that the funds have not been sold. As soon as Multichain can make a statement about this and clarify the situation, we will resume providing liquidity. »
Despite the disruption, Cronje remains optimistic about the future of Fantom and Multichain. He insisted that the Foundation had not resold its tokens. It just waits for a “clarification from Multichain” to redeposit the cash on Sushiswap.
Indeed, caution is the mother of safety. The Fantom Foundation does not want to end up with a worthless token if Multichain fails. This one probably has learned lessons from the recent collapses of Terra Luna and then FTX.
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