Multichain Crisis Spreads Throughout The Market, This Crypto Is Hurt The Most!


 "Hopefully the problem can be solved as soon as possible, it's a pity that others are victims."

It is already known that Multichain is one of the largest blockchain bridges in the cryptocurrency space that facilitates the exchange of tokens across various blockchains, among the platforms that use it are Binance Chain, Polygon, Avalanche and Ethereum.

However, it recently came as news that the Multichain protocol that holds various digital assets worth $1.8 billion has been accused of defrauding users after announcing that some cross-chain paths were unavailable due to force majeure*.

*Contract clauses that eliminate liability for disasters, unforeseen events that prevent participants from fulfilling obligations

Although Multichain said that they are in the process of getting the chain back online, its team did not reveal a specific date as to when normal operations will resume.

Of the streak, the Fantom blockchain was found to be the most affected as it suffered a loss of 36.7% after the rug-pull incident at the Multichain protocol sent shockwaves across the crypto market overnight.

The issue also got bigger when the Chinese authorities acted to detain members of the Multichain team plus law enforcement to control the wallet.

Despite this, Fantom stated that Multichain will operate as usual as concerns about the protocol's crisis have spread throughout the crypto market.

As of May 24, 2023, the Fantom Foundation will also withdraw $2.4 million of its funds from the liquidity pool on Sushiswap as part of a precautionary measure regarding the Multichain situation.

After falling as much as 10.70% to reach below the $0.31 level, Fantom-founded FTM price finally recovered slightly at $0.33 in the last 24 hours with a market cap of $925 million.