The native token of multi-chain (MULTI) experienced a steep 30% drop in price from $7 to $5. The sudden drop comes in the wake of growing dissatisfaction among users of the cross-chain bridge protocol who have reported transaction delays since May 21 in addition to rumors about CEO and protocol wallets. Multichain responded to the complaints, attributing the delays to an ongoing update and subsequent node updates for cross-chain routers.
The bridge under construction: claim of Multichain
multi-chain, in an announcement on May 23, said the update was taking longer than expected, which was the main cause of the delays. They said that only a few roads, including kava, zkSync And polygon zkEVM, were temporarily suspended, while the majority operated as usual. The company reassured users by telling them that their transactions would be processed as soon as the update was complete. One of the directors of multi-chain in the chain Telegram allayed worries
There is only one router left to update. The other 6 routers are working fine now. We are working on the latest router. Everything will return to normal when finished.
Analysis of the situation: significant sales of tokens in the midst of a crisis
In turmoil, the on-chain analysis firm lookonchain identified several entities participating in the Multichain token sale on centralized and decentralized exchanges. A transaction notable featured an address sending a staggering 494,200 tokens, equivalent to $2.75 million at the time, to the Gate.io exchange. Additionally, Lookonchain pointed to a trade made by an address identified by the name ENS “hwg.eth,” which sold 36,200 tokens (around $200,000) just yesterday.
A few minutes before writing this article, the phantom foundation would also have withdrawn a significant amount of tokens MULTI liquidity of Sushiswap:
This transaction comes as much harsher rumors are circulating on Twitter. Indeed, according to these rumors, the CEO of Multichain would have been arrested in China and the wallets of the protocol would have been compromised. Some users even go so far as to suspect a protocol rug pull on the pretext of his own arrest.
Looking Ahead: The Future of Multichain and Fantom
As the situation unfolds, no official statement has been shared by any team member. multi-chain to counter the rumours. The FUD around the Fantom Native DEX necessarily had an impact on the latter whose token MTF cash a loss of value of 8% on the day.
For now, the market is watching closely and users are advised to exercise caution until the situation is cleared up. It is also advisable to revoke the permissions given to the Multichain protocol with tools like Revoke.cash to protect against a potential attack.
The article Multichain under the storm: Transaction delays, rumors of arrest and compromised wallet appeared first on Corner Academy