This announcement affects those who use tokens that are cross-chain compatible on platforms such as BNB Smart Chain, Fantom, Ethereum, and Avalanche blockchains. These tokens allow users to access different networks and benefit from their features and services. However, this also introduces some risks and challenges that users should be aware of.
Binance, the cryptocurrency exchange, has declared that it will stop providing deposit and withdrawal services for several Multichain-bridged tokens from July 7, 2023, onwards.
#Binance will suspend deposits and withdrawals for a number of Multichain-bridged tokens from July 7, 00:00 UTC until further notice.
More details here 👇https://t.co/CL7V8UeT9l
— Binance (@binance) July 5, 2023
The tokens affected by this move are Polkastarter via BNB Smart Chain, Alchemy Pay via BNB Smart Chain, and Beefy. Finance via Fantom Network, SuperVerse via BNB Smart Chain, Travala via Ethereum Network, Spell Token via Avalanche C-Chain, Alpaca Finance via Fantom Network, and Harvest Finance via BNB Smart Chain, as per Binance’s blog post.
Difficulties with the Protocol Led to Binance’s Decision
The Multichain protocol, which enables bridged tokens to operate on different blockchains such as BNB Smart Chain, Fantom, Ethereum, and Avalanche, has been facing issues with delayed transactions since May 25, 2023.
This led to the suspension of deposits for various Multichain-bridged tokens on that date. Now, the support for these tokens has been officially terminated, affecting users who rely on them for cross-chain transactions.
Binance announced in a blog post that it is stopping its support for Multichain due to the difficulties that the protocol is facing. The exchange apologized for the inconvenience and explained that the situation is beyond its control.
Users can still access their Multichain assets on other networks, but they cannot deposit or withdraw them on Binance. Meanwhile, Multichain is dealing with several issues, such as some bridges being unavailable, and rumors of its co-founder and CEO, Zhao Jun, disappearing and possibly being investigated by the police.
Multichain (MULTI) is trading at $3.22, down by 3.95%, according to Coinmarketcap. To reach $100, Multichain would have to increase its value by 24 times. If it grows at a steady rate of 25% per year, it would take about 8.5 years for Multichain to hit the $100 target.