The Downward Spiral: Multichain’s Plummeting Token Price
On May 24, Multichain’s token (MULTI) took a nosedive, dropping 30% in a single day, settling at the not-so-lucky price of $4.97. What triggered this significant drop, you might ask? Well, it appears that a backend node upgrade was like that one relative who shows up really late to the family dinner—fashionably late but ultimately frustrating.
Users Left in Limbo
Reports flooded in from anxious users who found their funds missing, akin to a magic trick gone wrong. An admin on Multichain’s Discord attempted to reassure those affected by saying:
“Most routes are working as usual, but some (Kava, zkSync, Polygon zkEVM) are temporarily suspended. All affected transactions will arrive after the upgrade is complete. We sincerely apologize for the inconvenience.”
Although some transactions were proceeding smoothly, the suspended routes left many feeling like they were waiting on hold with customer service—always promised a resolution but never getting one.
Liquidity Drama: The Big Withdraw
As if the situation needed further complications, a wallet linked to the Fantom Foundation decided to pull out a staggering 449,740 MULTI tokens, worth about $2.4 million, from the liquidity pool on SushiSwap. Talk about making a big exit! It seems they decided to cash out just when Multichain was stumbling, leading to a perfect storm of panic selling.
Rumors That Trigger a Firestorm
The cherry on top was a tweet that caught the attention of over 300,000 users, claiming that the Multichain team had been arrested by Chinese authorities, and with them, a staggering $1.5 billion of contract funds were allegedly in limbo. Now that’s a plot twist worthy of a thriller! This rumor only added fuel to the fire, inciting more fear and uncertainty among investors.
The Bigger Picture: Multichain’s Journey
Founded in July 2020 in Singapore, Multichain aimed to bridge the gap between various blockchains. Despite the current setbacks, the protocol has previously surged to a total value locked (TVL) of over $10.5 billion in early 2022. With a TVL currently reported at $1.59 billion, there’s still a glimmer of hope! And let’s not forget their recent $100 million ecosystem fund intended to drive multichain projects forward, which screams optimism amidst chaos.
What’s Next for Investors?
As the dust settles, investors are left wondering: is this a buying opportunity or a sinking ship? Given the turbulent waters Multichain is navigating, it may be wise for investors to do their homework, keep a wary eye on developments, and perhaps lay off the DFS (Decentralized Financial Stress) for a bit.
