Andre Cronje denied that Fantom will be affected and believes that USDC, DAI and wBTC issued by multi-chains are more likely to be affected.

Multichain does not explain the cause of the failure

Multichain funds have been delayed across chains for many days. Users have been complaining about this situation since May 21, and the price of MULTI has also begun to fall since the 21st.

Multichain stated on the 23rd that due to "the upgrade of back-end nodes taking longer than expected," most cross-link routers are still running normally, while some (Kava, zkSync, Polygon zkEVM) are suspended.

The team was too silent, and some large transactions on the chain were detected. Twitter KOL began to publish a lot of rumors on the 24th, but this can only be said that Multichain deserved it. Multichain even only published one tweet after the incident.

The team is silent, even though Binance was one of Multichain’s investors in the past, it chose to suspend related cross-chain services.

(For previous reports, please see: Multichain Follow-up｜Binance has suspended the deposit of related cross-chain assets, and the community is eager for a formal response)

Multichain accounts for nearly 40% of Fantom’s issued assets, AC is not worried

Community analysis and data from The Block both point out that nearly 40% of the assets on the Fantom chain are issued by Multichain.

Assets issued on Multichain account for 78% of the market value of assets on the Fantom chain.

The degree of dependence between the two makes the community also worry about whether Fantom will be affected.

Fantom Foundation director Andre Cronje (AC) told The Block he was not worried:

Fantom has withdrawn 449,740 MULTI tokens from SushiSwap. You can see in the on-chain wallet that the assets have not yet been sold. Once Multichain can issue a statement and resolve the issue, we will invest liquidity again.

As for the staggered issuance of assets between the two on the chain, AC believes that the assets are calculated by multiple parties, and the Fantom cross-chain bridge is not affected. If there is a project that will be affected by this, it may also be USDC and DAI issued by multi-chains. and wBTC.

This article Andre Cronje comments on the Multichain crisis: Multi-chain stablecoins may be affected. First appeared in Chain News ABMedia.