The Multichain cryptocurrency bridge has recently come under scrutiny as users reported blocked transactions on the project’s Discord server . In response Multichain confirmed that certain inter-chain routes were unavailable due to an unknown reason without providing a specific timeframe for resolution . As a result the MULTI token experienced a 22 .5% loss in value within 24 hours . The protocol teams announced plans for a compensation scheme to address the affected users .
Impact on Fantom Ecosystem
The repercussions of the Multichain bridge issues have also been felt in the Fantom ecosystem . The FTM token witnessed a 6 .7% decline and the total value locked (TVL) in Fantom’s DeFi protocols dropped by nearly 13% according to DefiLlama data . Concerns arose due to the perceived dependence of the Fantom network on Multichain with fears that Multichain’s collapse could harm Fantom . Notably, the USDC pool alone amounts to approximately $82 million while fUSDT stands at over $62 million .
Rumors and Arrest Speculations
Amidst the blocked transactions rumors began circulating about the alleged arrest of members from the Multichain team in China . However these rumors should be treated with extreme caution until more information becomes available . Primitive Ventures, an investor in Multichain highlighted the Chinese authorities’ crackdown on crypto projects which further fueled the speculation . Meanwhile more than 494,000 MULTI tokens were transferred to Gate .io and trading volumes soared on the exchange .
Uncertainty and Caution
Multichain has not yet provided additional information regarding these developments, leaving the situation shrouded in uncertainty . As a result users are advised to exercise caution when using the protocol . While the issues may eventually be resolved the possibility of transactions remaining blocked warrants a conservative approach to minimize risks . Further updates and clarification from Multichain are eagerly awaited to address the current ambiguity surrounding the bridge’s operations .
