Fantom (FTM) in Serious Danger: Here's Main Reason

Fantom (FTM), a high-speed scalable blockchain network, is facing a precarious situation due to its significant exposure to Multichain, its official cross-chain bridge. A substantial portion of the total value locked (TVL) on the Multichain network comes from Fantom, raising concerns regarding the potential impact of recent developments.

Timeline of Fantom

Fantom Network, accounting for the highest proportion of Multichain's TVL, has not experienced significant outflow despite the Multichain arrest rumors and lack of communication from the team.

In a recent development, Fantom Foundation, led by Director Andre Cronje, has chosen to withdraw its funds from liquidity pools on the popular decentralized exchange, SushiSwap. This decision comes in response to the ongoing uncertainty surrounding the Multichain protocol.

A rug-pull kind of incident at the Multichain protocol has sent shockwaves across the crypto market. A staggering $1.8 billion in multichain wallets have been locked and rumors have it that the Chinese authorities have arrested Multichain team members with law enforcement taking control over the wallets.

Rumors of the arrest of the Multichain team have sent shockwaves throughout the Fantom ecosystem. Despite trading volumes of $129 million, the fear, uncertainty, and doubt (FUD) have resulted in a 5x increase in daily bridging volumes.

The Fantom Foundation – the team developing the Fantom blockchain – removed millions of dollars in liquidity from a trading pool for the native token of Multichain on Wednesday, compounding concerns over the cross-chain bridging protocol's stability.

Columbia University's unit dedicated to distributed ledger technology, "Blockchain at Columbia," has put forward a proposal to deploy the popular decentralized exchange platform, Uniswap, on the Fantom blockchain. The proposition, which emerged in collaboration with the Fantom and Axelar teams, aims to capitalize on the recent expiration of Uniswap's Business Source License (BSL) and expand its market reach across different ecosystems.

A proposal to launch Uniswap's third generation DEX or V3 on Fantom's blockchain is currently undergoing a “temperature check” governance vote.The proposal highlighted a market opportunity that could pull in $30-40 million in weekly trading volume while onboarding a scalable network with low transaction fees for usersFantom seems next in line of EVM chains eyed by the leading decentralized exchange after expanding to BNB Chain, DeFi's second-largest ecosystem by TVL. The Uniswap DAO is currently considering launching the third iteration of its decentralized exchange protocol on Fantom, a layer 1 blockchain with a proof of stake (PoS) consensus model and Ethereum Virtual Machine-compatibility (EVM).

Fantom (FTM) is a blockchain project that has gained attention in the crypto space for its unique features and potential. Despite a recent dip in key metrics such as Total Value Locked (TVL), the project has something special that many believe is worth attention.

Fantom (FTM) has been on a bearish movement since April 19, 2023, resulting in a loss of about 30%. The price decline contributed to the negative market sentiment around the asset, making it hard for any possible retracement.

Fantom (FTM) co-founder Andre Cronje is teasing the launch of a new cryptocurrency-friendly bank later this year. Cronje tells his 384,500 Twitter followers that a bank providing crypto-related financial services may launch later this year. “Need a card, or just payments infrastructure? If the latter, I can add you to our closed beta.