How Fantom Foundation Overcomes Multichain Challenges

Multichain, a cross-chain protocol that supports various multichain assets, faced a massive withdrawal of $125 million from its platform recently. Most of this amount came from the Fantom Bridge, which lost $122 million worth of wBTC, USDC, USDT, and other altcoins. As a result, Multichain announced that it would temporarily halt its services.

The incident raised alarm as the Multichain MPC address transferred assets to an unknown destination. Multichain updated its users on Twitter and urged them to be careful. The team also suggested that users should stop using Multichain services and revoke all approvals for Multichain-related contracts.

In addition to the recent turmoil, Multichain has faced technical issues and the mysterious disappearance of its CEO, which has raised doubts and sparked rumors about a possible hack.

Additionally, the well-known crypto expert Colin Wu noticed an unusual trend. Users were using DLN Trade to swap assets on the Fantom chain with those on other chains at a cheaper rate.

For the avoidance of doubt, FTM was never issued or managed by Multichain, so wFTM, FTM ERC-20, and FTM on Opera are not affected.

— Fantom Foundation (@FantomFDN) July 7, 2023

This resulted in a roughly 10% discount, with Fantom 1 USDC turning into BSC 0.9 USDC, Polygon 0.88 USDT, and more. Also, Binance stopped deposits and withdrawals for eight altcoins linked to Multichain, indicating something was wrong.

Fantom’s Resilience and Stability in a Volatile Market

Fantom Foundation issued a statement to calm the FTM token holders who were worried about the recent challenges. They explained that FTM tokens on platforms such as wFTM, ERC-20, and Opera were independent of Multichain and unaffected by its issues.

The Fantom Foundation has shown its strong dedication to transparency and trust. It quickly responded to the worries of investors when Multichain faced difficulties and assured them that the FTM tokens were safe and independent from Multichain’s problems. This boosted the confidence of the FTM community and highlighted the security and autonomy of the FTM ecosystem.

The Fantom Foundation is also committed to providing a reliable and efficient blockchain platform. It has proven its resilience and strength in overcoming challenges and maintaining the stability of the FTM ecosystem in turbulent times.