Multichain token crashed 28% due to network outages

What is price slippage in cryptocurrency trading?
What is price slippage in cryptocurrency trading?

Users of the cross-chain protocol Multichain (MULTI) began to complain about transactions stuck in the blockchain due to an error during the network upgrade.

The problem arose on May 21st. The project team stated that the difficulties appeared during the technical work on the nodes of the cross-chain routers.

“The internal host update is taking longer than expected. Most routers are working normally, but some of them (Kava, zkSync, Polygon zkEVM) are temporarily suspended. All affected transactions will come after the update is completed,” the developers warned on May 23.

According to a statement in the Telegram channel, as of May 24, only one problematic node remained, the remaining six “work normally.” Multichain assured that all user funds are safe.

Against the backdrop of network failures, the rate of the native MULTI token fell by 28.3% in a day. The asset is trading at $5.05 at the time of writing, according to data from CoinGecko.

Binance 5-minute MULTI/USDT chart. Data: Trading View.

Lookonchain analysts have discovered that several large investors have begun moving their holdings of the token. One of them sent 494,200 MULTI (~$2.75M) to the exchange.

The experts also recorded two transfers in the amount of 43,928 MULTI (~$247,000) and 36,243 MULTI (~$200,000).

Lookonchain noted that the Fantom Foundation removed 450,000 protocol tokens (~$2.4 million) from its portfolio on the SushiSwap decentralized exchange.

Recall that in January 2022, an unknown person used an exploit in Multichain, stealing about $3 million from users. In the end, the hacker decided to return the stolen funds in exchange for a reward of 50 ETH.

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