Whales offload Multichain as network suffers delayed transactions Whales offload Multichain as network suffers delayed transactions
Multichain's MULTI token dumped 27% amid widespread concerns among users about their funds and the protocol's operation.
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Updated: May. 24, 2023 at 8:00 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Multichain Network token MULTI fell by 27% after several whales dumped the token following its transaction delay issues.
Whales dump MULTI
Blockchain investigator Lookonchain reported that a whale address, 0xb4df, deposited 494,200 MULTI worth $2.75 million on Gate.io earlier today. The address is related to the Multichain Team, according to reports.
Hashkey also deposited 43,928 MULTI valued at $247,000 on the same exchange. Meanwhile, Hwg.eth preempted today’s dump by selling more than 36,000 MULTI for $200,000 on May 23.
Fantom (FTM) Foundation also removed roughly 450,000 units of MULTI ($2.4 million) from Sushiswap. Lookonchain noted that the crypto foundation would “likely sell-off” this withdrawal.
Arkham Intelligence further reported that several major investors were reducing their exposure to MULTI. According to the blockchain analytical firm, an unnamed entity moved $1.5 million worth of MULTI to Huobi from Gate.io.
Additionally, an on-chain liquidity provider for MULTI on Sushi Swap also removed about $5 million of liquidity. The move is likely to prevent any impermanent loss, but it means liquidity on the protocol has dropped significantly to $500k from $5.5 million.
Delayed transaction issues
On May 23, the Multichain team explained that it was experiencing issues with the planned upgrade of its cross-chain bridge. The team wrote:
“The upgrade of the back-end node is taking longer than expected. Most of the routes are working as usual, as some routes (Kava, zkSync, Polygon zkEVM) are suspended temporarily for now. All the affected transactions will arrive once the upgrade is complete.”
This delay led to the spread of FUD on its social media platforms. Several protocol users have raised different questions about their funds on the official Telegram channel.
A May 24 update from an admin of the group Mog Multi assured that it did not suffer an exploit and its users’ funds were safe. The admin added that the protocol worked on the last router and that regular services would resume soon.
However, the updates appear not to have stopped the community fears, as several users complained that their funds had been stuck on the bridge for up to 72 hours.
Besides the network issues, there are increased rumors that the Chinese authorities have arrested the Multichain team.
Multichain was yet to respond to CryptoSlate’s request for comment as of press time.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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