Binance Suspends Support for Multichain-Bridged Tokens, MULTI Token Plummets 6.5%

In a recent announcement, Binance revealed that it would be ceasing support for deposits and withdrawals of several Multichain-bridged tokens. The suspension is set to take effect from July 7, 2023, at 00:00 (UTC) until further notice. This decision comes after the exchange had previously suspended deposits for multiple Multichain-bridged tokens on May 24, following issues with the Multichain (MULTI) protocol.

The tokens affected by Binance’s latest suspension include Polkastarter (POLS) via BNB Smart Chain, Alchemy Pay (ACH) via BNB Smart Chain, Beefy.Finance (BIFI) via Fantom Network, SuperVerse (SUPER) via BNB Smart Chain, Travala (AVA) via Ethereum Network, Spell Token (SPELL) via Avalanche C-Chain, Alpaca Finance (ALPACA) via Fantom Network, and Harvest Finance (FARM) via BNB Smart Chain.

This move by Binance has raised concerns among traders and investors who hold these tokens. The suspension of support for deposits and withdrawals can limit liquidity and hinder the ability of token holders to trade or transfer their assets. Binance, however, has not provided specific reasons for the suspension or a timeline for when the support will be reinstated.

The issues surrounding the Multichain protocol have significantly impacted the price of its native token, MULTI. Following the news of Binance’s suspension of several bridged tokens, MULTI experienced a further decline of 6.5%, trading at $3.12 at the time of writing. This downward price movement is part of a continuous trend that began in May when the protocol encountered a series of challenges.

MULTI/USDT 4 hours-chart on Binance | Source: TradingView

During May, the Multichain team faced difficulties reaching out to their CEO, Zhaojun, amid rumors that he had been arrested in China. Around the same time, the protocol suffered from a botched planned upgrade of its cross-chain bridge, with the team attributing the unavailable routes to a “force majeure” event. These incidents raised doubts about the stability and reliability of the Multichain protocol, leading to a loss of investor confidence and a subsequent decline in the MULTI token’s value.

The decision by Binance to suspend support for the Multichain-bridged tokens adds further uncertainty to the already troubled ecosystem. Traders and investors in these affected tokens will have to find alternative avenues for trading and managing their assets until support is reinstated. Meanwhile, the Multichain team must work diligently to address the underlying issues that have plagued the protocol and caused disruptions across various networks.

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