Binance reacts to Multichain’s situation

The cross-chain protocol Multichain meeting of difficulties whose causes still remain unknownand prompted speculations and above all reactions actors of the crypto. Binance suspends deposits from tokens.

But what’s happening on the Multichain ? The silence from those responsible for the cross-chain protocol is deafening. With a TVL (total value locked) estimated at $1.5 billion, Multichain’s fate is a cause for concern.

For several days, transactions have been frozen and several cross-chain gateways – Kava, zkSync, Polygon zkEVM – remain inaccessible. To explain these failures, the company has invoked the ” force majeure “.

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A worrying force majeure

What lies behind this qualifier? Mystery. Indeed, the Chinese protocol leaders no longer respond. From rumors suggest that they may be detained by the Chinese authorities, for reasons yet to be clarified.

In any case, the absence of any explanation is a cause for concern and a vector of risk. Several crypto projects using or connected to Multichain have already taken action to protect themselves, notably from the risk of default or cut-off.

Conflux Network, which offered co-mint with Multichain, has suspended the functionality as a precautionary measure. Multichain can therefore no longer mine tokens on its blockchain. The company has also preemptively committed to assisting its users in the event of losses.

Several leading users of the protocol have withdrawn their investments. HashKey Group, for example, transferred $250,000 in tokens to an exchange. The founder of TronJustin Sun, for his part, withdrew 470,000 USDD from the protocol.

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Fantom addicted to Multichain

The Fantom Foundation is also taking a step back. This week, it withdrew $2.4 million in cash from tokens. MULTI protocol from SushiSwap. The blockchain Fantom is highly dependent on Multichain. She would represent more than a third of its TVL.

Binance, a Multichain shareholder through its incubator, has also reacted to the uncertainty affecting the protocol. The centralized exchange has taken the decision to suspend deposits for 10 tokens, including AVA-ETH, SPELL-AVAXC and FTM-ETH, before reactivating the protocol. deposits for FTM-ETH.

This temporary halt, pending clarification, affects tokens identified on the BNB Smart Chain, Fantom, Ethereum and Avalanche networks. Token deposits on other supported networks are not affected.

Multichain’s native token, MULTIfell by nearly 60% over 7 days to $3.96.

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