Pending Clarification by Multichain Team: Deposit Hold Affects Hit Tokens
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In response to a series of transaction issues that have raised concerns regarding the Multichain (MULTI) protocol, leading cryptocurrency exchange Binance has temporarily suspended deposits for 10 block tokens as of May 25.
Affected token pairs include polkastarter (POLS), alpacatoken (ALPACA), travala.com (AVA), spell (SPELL), fantom (FTM), alchemy (ACH), beefy (BIFI), and moderation ( SUPER), finance harvest (FARM) and dexe (DEXE).
Temporary suspension
In a tweet posted on May 25, Binance reported that they will be temporarily suspending deposits for connected tokens while they wait for clarity.
The announcement affects the following pairs, POLS-BSC, ACH-BSC, BIFI-FTM, SUPER-BSC, AVA-ETH, SPELL-AVAXC, ALPACA-FTM, FTM-ETH, FARM-BSC, and DEXE-BSC on the BNB Smart Chain, Fantom, Ethereum, and Avalanche blockchain networks.
As mentioned on Binance’s deposit page, although deposits for these tokens have been paused, withdrawals of these tokens and deposits on other supported networks remain unaffected and will remain available to users.
Mystery fuel
Although Binance attributed the comment to Multichain, the company has been relatively silent. the last tweet Multichain came out on May 24th.
However, rumors were also circulating on Twitter about the Multichain team being arrested in Shanghai and causing the attempted money transfer.
according to @ArkhamIntel on Twitter, Team wallets associated with the project have reportedly transferred nearly $3 million from MULTI to cryptocurrency exchange platform Gate.io. These developments further contributed to investor concerns, which led to a massive 26.5% drop in the price of MULTI$ over a 24-hour period.
This incident highlights the vulnerability of the cryptocurrency market in the face of technical issues, regulatory uncertainties, and uncertain information, underscoring the importance of transparency, communication, and prompt problem-solving to the continued development and adoption of cryptocurrencies.
