Binance, the largest crypto exchange by volume, withdrew support for eight Multichain bridge tokens, effective July 7, 2023. The decision comes after the previous suspension in May due to a partial pause in the functioning of cross-chain routes in the Multichain (MULTI) protocol.
The affected tokens include Polkastarter (POLS), Alchemy Pay (ACH), Beefy.Finance (BIFI), SuperVerse (SUPER), Travala (AVA), Spell Token (SPELL), Alpaca Finance (ALPACA), and Harvest Finance (FARM).
Recap of Multichain Bridge Attack and Suspended Deposits
Binance has discontinued support for eight Multichain bridge tokens this month following a previous suspension in May. It was a response to issues with the Multichain protocol’s cross-chain routes.
The affected tokens include Polkastarter, Alchemy Pay, Beefy.Finance, SuperVerse, Travala, Spell Token, Alpaca Finance, and Harvest Finance, are traded on various chains such as Ethereum, BNB, Fantom, and Avalanche.
Binance temporarily suspended token deposits to Multichain’s bridge token networks in May. It explained that it was due to stuck transactions across several cross-chain pathways. Users experienced difficulties with several swap pairs like POLS-BSC, ACH-BSC, and BIFI-FTM, among others.
At the time, the Multichain team said, “After service is restored, pending transactions will be credited automatically.”
Concerns were raised after the Multichain management team did not address the issue. This led to speculation about the project’s status and potential force majeure. Force majeure involves unforeseen events beyond management’s control. In this case, news of their arrest in China.
In a tweet on May 31, Multichain raised another issue, stating, “The team has done everything possible to maintain the protocol running, but we are currently unable to contact CEO Zhaojun and obtain the necessary server access for maintenance.”
Users called the chain a ‘joke’ in response to its ongoing issues.
Binance’s Recent Listing Before Dropping Support
Since the previous halt, the value of MULTI has experienced a significant decline. The protocol has been amid network delays and rumors of arrests. The alleged arrests caused major players in the crypto industry, including Binance, to withdraw their support.
Meanwhile, as the situation continues to unfold, industry participants remain cautious.
Binance is dealing with its own set of legal hurdles in the meantime. Despite facing legal challenges from regulatory authorities such as the SEC and European regulators and a recent clash with the Australian regulator, Binance made a new token listing announcement on July 3.
Binance plans to list PENDLE, the official token of the Pendle Finance protocol, in its Innovation Zone. The token listing on the exchange has already significantly impacted Pendle’s value.
Lookonchain reported a price surge of approximately 50% for PENDLE after Binance’s listing.
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Source: https://beincrypto.com/binance-multichain-bridge-tokens-protocol-debacle/