What happened to Multichain? Cross-chain asset delay causes token to plummet by 35%.

Recently, several users have posted on social media that assets transferred through Multichain for cross-chain transactions have not arrived for over 48 hours, indicating a possible malfunction. Although Multichain had previously announced a contract upgrade, the time it is taking for transfers to arrive is far beyond estimates.

Crypto KOL “BTCdayu” posted that he had transferred over 40 ETH assets through Multichain two weeks ago, which have not arrived yet and do not appear in his transaction history. However, when he tested with 0.1 ETH, the transfer arrived quickly, leading him to suspect that there may be a problem with Multichain.

Earlier today, the BitKeep wallet team announced on Twitter that they have suspended support for Multichain cross-chain transfers due to multiple users reporting abnormal delays, in order to ensure the safety of users’ assets.

In response to the delayed arrival of cross-chain funds, the Multichain team stated in their community that the backend node upgrade took longer than expected, and most routes are working as usual. However, some routes (Kava, zkSync, Polygon zkEVM) have been temporarily suspended, and all affected transactions will arrive after the upgrade is completed. Yesterday, Multichain announced that they would be upgrading their contracts and would complete the upgrade within 24 hours.

However, the customer service response regarding the specific arrival time was unclear, leading to users being very nervous. From the secondary market perspective, some investors have begun to gradually sell Multichain’s token, MULTI (Note: currently, MULTI does not have futures contracts or leverage, and cannot be shorted).

According to 0x Scope monitoring, an address starting with 0x b 4 df, which is related to @MultichainOrgteam, transferred 494,200 MULTI tokens (worth 3.17 million U.S. dollars) to Gate.io three hours ago; Hashkey deposited 43,928 MULTI tokens (worth 247,000 U.S. dollars) to #Gateio. The continued selling pressure has caused the MULTI price to continue to decline, falling by over 35% in the past 48 hours and dropping below $5 at one point. In addition, due to the Multichain incident, the price of Fantom (FTM) has also fallen sharply today, with a daily decline of 9%, as Multichain is the main cross-chain bridge protocol on the Fantom chain.

As the largest cross-chain bridge, the lock-up value of Multichain currently reaches 1.6 billion U.S. dollars (approximately 1.8 billion U.S. dollars before this news was released at night). With panic spreading in the crypto community and all kinds of rumors flying around, the situation is tense.

However, KOL “0x Gene” reasoned from the perspective of on-chain data analysis that there was no problem with Multichain. The Kava, zkSync, and Polygon zkEVM chains did exceed their expected cross-chain maintenance times, which caused user panic. However, from the perspective of cross-chain contracts, there are transactions being conducted normally on the currently unmaintained chains. “Looking at the contracts that store assets that were spot-checked, there were no abnormal large transfers that led to asset liquidation, and the contracts are operating normally.”

(Multichain network running screenshot)

Additionally, most of the rumors circulating in the community are sensational and illogical. Apart from the fact that there is indeed a delay in cross-chain asset arrival for users, other claims cannot be verified. Claims such as “tens of billions of assets being frozen” seem more like a fabrication to create panic using the aforementioned TVL, and do not exist. The funds on the cross-chain bridge are not centralized and cannot be withdrawn at will, and the funds on the chain cannot be used by the team at will.

Therefore, users should not blindly FUD, but for safety reasons, they can cancel their previous contract authorizations. We will also continue to track and report on the matter, hoping for a proper resolution.

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