- Multichain faces $125M outflows and suspends services.
- Fantom Foundation assures FTM holders amidst Multichain’s troubles.
- FTM price drops as bears exploit market uncertainty.
In a startling episode, Multichain recently weathered a hefty outflow of $125 million in multichain assets from its cross-chain protocol. The Fantom Bridge bore the brunt of this exodus, witnessing a $122 million drain from its entire portfolio of wBTC, USDC, USDT, and other altcoins. Consequently, the platform announced a temporary suspension of its services.
Suspicions flared as assets from the Multichain MPC address moved abnormally to an undisclosed location. As the dust settled, Multichain took to Twitter to update users. The team advised caution, recommending all users hold off using Multichain services and revoke all Multichain-related contract approvals.
Besides the latest upheaval, Multichain has been grappling with technical glitches and the conspicuous absence of its CEO, raising eyebrows and fueling speculation about a possible breach.
Moreover, the notable crypto analyst Colin Wu pointed out a peculiar trend. Users were leveraging DLN Trade to swap assets on the Fantom chain for those on other chains at a discount.
This move reflected in a roughly 10% discount, with Fantom 1 USDC converting into BSC 0.9 USDC, Polygon 0.88 USDT, and more. Additionally, Binance halted deposits and withdrawals for eight altcoins connected to Multichain, signaling that trouble was brewing.
Fantom’s Steadfast Stance Amid Turbulence
Fantom Foundation stepped in with a reassuring message for FTM token holders in the face of these adversities. Their emphatic statement clarified that FTM tokens on platforms like wFTM, ERC-20, and Opera had no ties with Multichain.
For the avoidance of doubt, FTM was never issued or managed by Multichain, so wFTM, FTM ERC-20, and FTM on Opera are not affected.— Fantom Foundation (@FantomFDN) July 7, 2023
This assurance is allied with fears of potential fallout from Multichain’s woes affecting FTM tokens. Significantly, it bolstered investor confidence and underlined the secure and autonomous nature of the FTM ecosystem.
The Fantom Foundation’s firm commitment to transparency is noteworthy. The foundation swiftly addressed investor concerns in uncertain times, reflecting its dedication to building trust and nurturing a robust community. As such, FTM token holders can take comfort in knowing that their assets remain secure and unaffected by Multichain’s tribulations.
The Fantom Foundation continues reinforcing its promise of a reliable, efficient blockchain platform. This commitment, coupled with its resilient response in the face of challenges, continues to echo the strength of the FTM ecosystem amidst a storm.
FTM/USD Market Update
Unfortunately, market bears exploited the wary situation, causing the FTM price to plummet from a 24-hour high of $0.3074 to a 7-day low of $0.2613. If the support level at $0.2613 doesn’t hold, the following line of defense lies at $0.2500. Bulls may face resistance at $0.2800 and $0.2900 if they regain control.
However, the FTM’s market capitalization slid by 10.56% to $753,979,964, while its 24-hour trading volume soared by 203.21% to $230,070,287. This boost in trading volume implies an increased interest in FTM and potential for price movement.
FTM/USD 24-hour price chart (source: CoinMarketCap)
In conclusion, Fantom’s resilience shines amidst the turmoil, reinforcing investor confidence and the strength of the FTM ecosystem.
Disclaimer: The views, opinions, and information shared in this price prediction are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be liable for direct or indirect damage or loss.
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