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Multichain Hack Led To The Smartest Arbitrage In Crypto History

Published 22/07/2023, 13:33
Multichain Hack Led To The Smartest Arbitrage In Crypto History

  • The recent Multichain hack caused price fluctuations on the Fantom blockchain.
  • The price differences led to what some have called the smartest arb in crypto history.
  • Opportunistic traders reportedly bought USDC at a 50% discount and offloaded it for a profit on other chains.

The suspicious outflow of funds from cross-chain router protocol Multichain earlier this month triggered a domino effect that involved the devaluation of crypto assets on the Fantom blockchain, which relied on Multichain for maintaining accurate trading prices in its ecosystem.

The devaluation led to differences in prices of the same crypto assets on different chains, which paved the way for what experts described as the smartest arbitrage in crypto history. Arbitrage refers to a type of trading that takes advantage of the fluctuation in the price of assets in different markets. This allows traders to profit from the minor difference in prices of the same asset across several marketplaces.

Crypto journalist Wu Blockchain took to Twitter earlier today to highlight one such arbitrage associated with the price difference induced by Multichain’s recent issues. Following the outflow of over…

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