Fighting Multichain Crisis: Stargate's Fantom Pool Disabling Proposal Bolsters Ecosystem Resilience

In response to the recent “force majeure” event affecting Multichain and the resulting concerns over the stability of anyUSDC, Stargate, the LayerZero cross-chain bridge protocol, has proposed a comprehensive plan to safeguard its ecosystem.

Timeline of Fantom, Multichain

Stargate proposes to disable Fantom Pool and cross-chain paths due to concerns over the stability of anyUSDC. This proposal aims to mitigate risks by taking several steps, including removing and unwinding anyUSDC POL via Multichain.

Stargate, the LayerZero cross-chain bridge protocol, has presented a comprehensive proposal in response to the recent “force majeure” event affecting Multichain and the resulting concerns over the stability of anyUSDC, Fantom's primary USDC asset. With the aim of mitigating risks and ensuring the integrity of its ecosystem, Stargate has laid out a series of strategic

Participants in the crypto ecosystem are on high alert as Multichain's silence fuels worries about the platform's safety. According to reports, key participants in the crypto industry are fortifying their defenses as worries about Multichain, a major platform for transferring assets between different blockchains, mount.

The MultiChain protocol and its native token, the MULTI, have been in the limelight in today's crypto news following reports of transactions on the Multichain protocol being delayed across multiple cross-chain bridges without a clear explanation. This has led to a huge sell-off that resulted in the MULTI price dropping by 20% at press time.

MULTI, the native digital currency of the Multichain cross-chain protocol, is seeing the most dominant negative price actions today after plunging as much as 23% over the past 24 hours. With the price slump, the cryptocurrency is trading at a price of $3.88, but with significant Fear, Uncertainty and Doubt (FUD) in the community.

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.

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.

The silence emanating from Multichain's leadership has amplified rumors, leading to significant unease and uncertainty among protocol users. At present, several of Multichain's cross-chain pathways remain down, leading to a major pile-up of transactions on the 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.