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Multichain Token Plummets 30% Amid Backend Update Delay

multichain token plummets 30 amid backend update delay

The price of the Multichain Cross-Chain Routing Protocol (MULTI) token decreased by 30% in just 24 hours on May 24, trading at $4.97 .The huge selloff occurred after users reported delays in receiving their multichain funds due to a backend node update taking much longer than expected .

multichain token plummets 30 amid backend update delay 2

Wallet Address Activity and Rumors Add to the Turmoil

Awallet address associated with Fantom Foundation, which is a layer-1 blockchain developer, allegedly removed MULTI tokens worth $2.4 million from liquidity on decentralized exchange SushiSwap during the same period .Additionally rumors circulated, with one tweet even suggesting that the Multichain team had been arrested by Chinese police, controlling $1.5 billion of contract funds .These factors likely contributed to the heightened selling pressure .

Multichain’s Past Successes and Recent FundingFounded in Singapore in July 2020 to address the need for inter-blockchain communications, the Multichain protocol has achieved a total blocked value (TVL) of over $1.59 billion .At its climax in early 2022, the TVL reached $10.5 billion before the onset of the bearish cryptocurrency market . In December 2021 Multichain ensured $60 million in a seed funding round led by Binance Labs .Recently the company promised a $100 million ecosystem fund to hasten native multichain projects , demonstrating their commitment to even further improvement and development.

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