What Triggered the Multichain Drop?
The value of Multichain’s token, MULTI, took a nosedive on May 24, falling by a staggering 30% to a value of $4.97. The primary reason? Users reported missing multichain funds due to an unexpectedly prolonged backend node upgrade. It’s like waiting for your Amazon package that somehow got lost in Narnia.
Multichain’s Response
In the midst of this chaos, an admin from the Multichain Discord channel appeared to calm the storm. They reassured users that most routes were operating as usual and that only specific routes like Kava and zkSync were temporarily suspended. “All affected transactions will arrive after the upgrade is complete,” they promised. Apologies were issued like free samples at a Costco event.
Liquidity Movements and Speculation
Just as this drama unfolded, a wallet address tied to the Fantom Foundation pulled a whopping 449,740 MULTI—worth about $2.4 million—out of liquidity on the decentralized exchange SushiSwap. Talk about making a swift exit! Furthermore, a viral tweet alleging that the Multichain team had been arrested stirred the rumor pot even further. The tweet gained over 300,000 views, playing a game of financial telephone that sent alarm bells ringing across crypto communities.
Outflows and Market Reaction
According to reports from blockchain analytics firm Lookonchain, MULTI experienced at least $3 million in outflows linked to those in the know—affectionately dubbed ‘smart money accounts’. So while the average joe was panicking, the real players were already executing their escape plans.
A Brief History of Multichain
Founded in Singapore back in July 2020, Multichain aimed to fill the communication void between different blockchains. By 2022, it boasted a total value locked (TVL) of $10.5 billion—before the great crypto bear market arrived to spoil the party, of course. In December 2021, the company secured $60 million in a seed funding round, led by none other than Binance Labs, showing it had the backing of giants. Recently, Multichain also pledged a $100 million ecosystem fund to boost native multichain projects, proving they’ve still got big ambitions, even amidst the storm.
