Multichain Holds 1.8 Billion Assets Locked, Concerns About Crypto Disaster

Key Points:

• At present, Multichain has up to $1.8 billion in various digital currencies split over many networks.
• If the protocol makes a move to take away all of the cash, as in a rug-pull, the market may explode.

The widespread misunderstanding around the Multichain protocol has fueled even more fear in the crypto industry.

The most recent outrage in the community was caused by a tweet from self-proclaimed crypto market investigator @BoringSleuth, which revealed the probable foundation for a rug-pull. According to @BoringSleuth, Multichain now houses up to $1.8 billion in various digital currencies split across many networks.

The detective believes that if Multichain makes a move to take away all of the cash, which seems to be the case, the market’s devastating impact may be reversing.

Multichain previously stated that the majority of the Multichain protocol’s cross-chain routes are operational, but certain cross-chain routes are inaccessible due to force majeure, and the time to restore service is unclear. Customers complained that cash had been blocked in the bridge for many hours. The team reached an agreement to reimburse users for their losses.

The protocol vowed to reimburse customers for any losses incurred as a result of the incident, which community members think will not be maintained.

With the realization that the sector has seen countless scams and rug pulls, exchanges began taking the necessary safeguards to protect investors. Binance, a cryptocurrency exchange, took one of the most aggressive measures in this situation by temporarily suspending deposits for bridging tokens associated with Multichain. The exchange may resume deposits only after receiving confirmation from the Multichain team.

But, @BoringSleuth is still suspicious about numerous prior rugs, as well as Binance.

“There are rumors of an arrest & some bridges are no longer working. I’m most suspicious though because of previous work I had done where they came, and stayed on my radar due to their teams connections to several previous rugs, and Binance.”

On SushiSwap, Fantom Foundation spent $2.4 million of the protocol’s native MULTI tokens. HashKey Group sent $250,000 to cryptocurrency exchange Gate.io, while Tron creator Justin Sun transferred 470,000 USDD stablecoin. The absence of Multichain cross-chain routes has the greatest impact on Fantom Foundation, followed by BSC and Optimist.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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