- The fund withdrew $2.4 million MULTI
- Andre Cronje said this was due to the uncertainty around Multichain
- He added that the tokens are on the wallet, no one has sold them
- Currently the protocol is still idle
Fantom Foundation Director Andre Cronje toldwhy the fund withdrew its funds from the pools to SushiSwap and stopped providing liquidity to MULTI. According to Andre, this was due to the uncertainty around Multichain. Currently, the protocol is still idle in three of its routes due to an incomprehensible “force majeure”.
On May 24, the Fantom Foundation withdrew approximately $2.4 million from MULTI, the native token of the Multichain protocol.
“There is no point in doing LP in times of uncertainty. You can see in the wallet that the funds were not sold, as soon as Multichain is able to issue a statement on this and clarify the situation, we will conduct an LP again” – Cronye said.
The cross-chain protocol Multichain has not conducted any transactions for the fifth day. However, it still has a few bridges – Kava, zkSync, Polygon zkEVM – that are now suspended. On May 24, a transaction delay occurred in the protocol, causing the MULTI token to lose more than 20% of its value.
The first reason for the shutdown was due to an update, but yesterday the explanation was changed to the ambiguous “force majeure”.
Today Multichain promised to pay compensation to users affected by transactions stuck in the blockchain.
