In a recent Twitter announcement, the Multichain team has confirmed their commitment to compensate individuals impacted by the temporary disruption of certain cross-chain routes over the past few days. While most of the Multichain protocol’s cross-chain routes continue to operate smoothly, some routes have experienced temporary unavailability due to unforeseen circumstances. The team is actively working to restore services to these affected routes; however, the exact timeframe for their resumption remains uncertain.
In their tweet, Multichain stated, “While most of the cross-chain routes of Multichain protocol are functioning well, some of the cross-chain routes are unavailable due to force majeure, and the time for service to resume is unknown. After service is restored, pending transactions will be credited automatically. Multichain will compensate users who are affected during this process, and the compensation plan will be announced later.”
While most of the cross-chain routes of Multichain protocol are functioning well, some of the cross-chain routes are unavailable due to force majeure, and the time for service to resume is unknown. After service is restored, pending transactions will be credited automatically.…
— Multichain (Previously Anyswap) (@MultichainOrg) May 24, 2023
Mog, Vice President of Strategic Partnerships at Multichain, reassured users that the majority of cross-chain routes and bridges are still operational. He mentioned that only the Router2 routing system is awaiting an upgrade. He emphasized that 99% of the other routes and bridges are maintaining their regular functionality.
Previously, some users had reported transaction delays since May 21st. Within a few hours, the project’s MULTI token plummeted by 30%, reaching a value of around $5. Currently, MULTI is trading around $5.21, marking a 20% decrease compared to the previous 24 hours.
Multichain’s initial silence in response to user feedback fueled rumors suggesting that the project’s team had been apprehended by Chinese authorities. It wasn’t until 2:45 AM on May 25th (Chinese time) that Multichain’s Twitter account posted the aforementioned update. However, the statement did not confirm or address the rumors surrounding their alleged arrest in China.
Prior to this announcement, at least three cryptocurrency organizations took actions against Multichain. On the evening of May 24th, the Fantom Foundation withdrew $2.4 million in liquidity from the MULTI token on the decentralized exchange SushiSwap. Simultaneously, the Chinese crypto investment company HashKey Group transferred $250,000 to the Gate.io exchange.
Additionally, Justin Sun, the founder of the TRON blockchain, withdrew 470,000 USDD stablecoins from the protocol.
Justin Sun withdrew 469,908 $USDD from #Multichain 20 mins ago.
Don’t forget that you also bought 17,830 $MULTI ($90,579) in August last year, when the price was ~$5.4.
You are currently at a loss. @justinsuntron pic.twitter.com/0ssLjMyjHp
— Lookonchain (@lookonchain) May 24, 2023
Multichain’s commitment to compensating affected users demonstrates their determination to address the disruptions and regain trust within the crypto community. While the exact details of the compensation plan have yet to be announced, the gesture aims to mitigate any potential losses incurred by users during this process.
Read more:
- Multichain’s MULTI Token Plunges 30% Following Rumored Arrest Of Development Team
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