4 - 6 minute read
Multichain (MULTI) is a cross-chain router protocol that aims to serve the need for inter-blockchain communications. Founded in July 2020 in Singapore, Multichain has surpassed $1.59 billion in total value locked (TVL) and reached a peak TVL of $10.5 billion in early 2022 before the onset of the cryptocurrency bear market. However, the token price of MULTI fell by 30% over 24 hours to trade at $4.97 at the time of publication, following reports that users’ multi-chain funds had not arrived due to a backend node upgrade “taking longer than expected.”
“Most routes are working as usual, as some routes (Kava, zkSync, Polygon zkEVM) are temporarily suspended. All affected transactions will arrive after the upgrade is complete. We sincerely apologize for the inconvenience caused.”
The selloff came after users reported that their multi-chain funds had not arrived due to a backend node upgrade “taking longer than expected.” An admin in the Multichain Discord channel wrote, “Most routes are working as usual, as some routes (Kava, zkSync, Polygon zkEVM) are temporarily suspended. All affected transactions will arrive after the upgrade is complete. We sincerely apologize for the inconvenience caused.” At the same time, a wallet address linked to layer-1 blockchain developer Fantom Foundation reportedly removed 449,740 MULTI ($2.4 million) from liquidity on decentralized exchange SushiSwap. Rumors also appear to have fueled the selloff. In a tweet viewed over 300,000 times since publication, one user wrote: “It’s rumored that the multichain team has been arrested by the Chinese police, with 1.5 billion dollars of contract funds under control.” The same day, blockchain analytics firm Lookonchain reported at least $3 million worth of MULTI outflows linked to smart money accounts.
The admin in the Multichain Discord channel apologized for the inconvenience caused due to the delayed backend node upgrade. However, the delay and rumors of the Multichain team’s arrest have caused panic among investors, leading to the selloff of MULTI tokens. This panic is further fueled by the removal of MULTI tokens from liquidity on decentralized exchange SushiSwap.
According to blockchain analytics firm Lookonchain, at least $3 million worth of MULTI outflows are linked to smart money accounts. This shows that some investors are taking advantage of the selloff to cash out their MULTI tokens.
⚠️ Dear BitKeepers, according to industry news, there has been a problem with @MultichainOrg's cross-chain bridge transaction function, and several #MultiChain community users reported abnormal delays in cross-chain assets.
— BitKeep Wallet (@BitKeepOS) May 24, 2023
1/4🧶
The selloff of MULTI tokens is a cause for concern among traders, especially those holding MULTI tokens. The delays and rumors of the Multichain team’s arrest have caused panic among investors, leading to a sharp decline in the token’s value. However, traders should exercise caution and not make hasty decisions based on rumors. It is essential to wait for official updates from Multichain regarding the status of the backend node upgrade.
The selloff of MULTI tokens presents an opportunity for traders who want to buy the token at a discounted price. However, traders should exercise caution and not make hasty decisions based on rumors. It is essential to wait for official updates from Multichain regarding the status of the backend node upgrade. If the upgrade is successful, the token’s value may recover, presenting an opportunity for traders to make a profit. However, if the upgrade is unsuccessful, the token’s value may continue to decline, posing a risk to traders who hold MULTI tokens.
The Bottom Line
The delay in the backend node upgrade and rumors of the Multichain team’s arrest have caused panic among investors, leading to a sharp decline in the value of MULTI tokens. Traders should exercise caution and not make hasty decisions based on rumors. It is essential to wait for official updates from Multichain regarding the status of the backend node upgrade. The selloff of MULTI tokens presents an opportunity for traders who want to buy the token at a discounted price. However, if the upgrade is unsuccessful, the token’s value may continue to decline, posing a risk to traders who hold MULTI tokens.
