Multichain Token Drops 30% Due To Backend Upgrade Delay
Even though the token price has dropped a lot, the TVL of the MULTI system has stayed mostly the same at $1.6 billion.
On May 24, the price of a token for the cross-chain router protocol Multichain (MULTI) dropped by 30% in just 24 hours. At the time of writing, the token was worth $4.97.
Users said that their multi-chain funds hadn’t arrived because a backend node upgrade was “taking longer than expected.” This led to the selloff. In the Multichain Discord group, an administrator 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.”
Meanwhile, a wallet account associated to layer-1 blockchain firm Fantom Foundation deleted 449,740 MULTI ($2.4 million) from liquidity on decentralized exchange SushiSwap. It looks like rumors also played a role in the selloff. One person wrote in a tweet that has been seen more than 300,000 times since it was posted:
“It’s rumored that the multichain team has been arrested by the Chinese police, with 1.5 billion dollars of contract funds under control.”
On the same day, a blockchain monitoring company called Lookonchain said that smart money accounts had at least $3 million worth of MULTI outflows.
Multichain, founded in July 2020 in Singapore to facilitate inter-blockchain interactions, has topped $1.59 billion in total value locked (TVL) and peaked at $10.5 billion in early 2022 before the cryptocurrency bad market.
Multichain’s $60 million seed round was headed by Binance Labs, the cryptocurrency exchange’s venture capital arm. This month, Multichain announced a $100 million ecosystem fund to accelerate native multi-chain applications.
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