In the previous, when customers wished to transfer assets from a chain like Ethereum to other chains, they had to use an intermediary, CEX exchanges. This not only wastes time but also wastes a whole lot of transaction costs. Therefore, to resolve the over difficulty, tasks and merchandise this kind of as Multichain had been born. However, due to tricky market place occasions, the identify Multichain has progressively disappeared from a lot of people’s recollections. So what is multichain? And what is the existing predicament of this undertaking? Let’s locate out with Coinlive by the report under.
What is multichain? Learn additional about the collapse of the platform that the moment drove the blockchain bridge
What is multichain?
When it was very first launched on the market place, Multichain had a various identify, Anyswap. However, soon after a time period of operation, this undertaking transformed its identify to Multichain and applied this identify until finally it officially stopped operating in July 2022. Leaving a lot of regrets and disappointments for the consumer and the undertaking neighborhood.
When in operation, Multichain presents customers with a variety of utilities close to the blockchain, the most common of which is a cross-chain bridge, which aids transfer assets concerning various blockchains. At its peak, this undertaking recorded a extremely higher complete trading volume of up to $88 billion, supported additional than three,000 tokens and reached the TVL volume dreamed of by any undertaking, i.e. $two.two billion.
Multichain emblem
When making use of Multichain, customers and tasks can record their tokens for no cost. Furthermore, the moment these tokens are efficiently listed, they can be completely linked to current blockchains, hence decreasing the volume of do the job tasks require to do. To do this, the Multichain working model has been established with a extremely uncomplicated but particularly intelligent mechanism. When a consumer desires to transfer an volume of assets from a single blockchain to a further, a good contract will lock this asset and release an equivalent volume of assets onto the location blockchain.
One benefit that Multichain has supplied to person customers is that it does not shop consumer assets (non-custodial) to be certain a decentralized knowledge for customers when making use of this platform. Furthermore, when trading assets, Multichain also supports customers with the costs of the authentic blockchain, hence making certain that rate slippage will be zero.
Current predicament of the Multichain
Currently, by logging into CoinMarketCap and browsing for the key phrase Multichain or the project’s MULTI token, we can see that the rate of this token has misplaced additional than 15 occasions its worth from the time it was listed to currently. Furthermore, CoinMarketCap also announced that the undertaking has stopped operating and advises customers not to use the merchandise of this undertaking.
CoinMarketCap data as of September 20, 2023
At the same time, on DeFiLIama, data shows that the once desirable amount of TVL is now only around $112 million, with the market capitalization only reaching $44 million. Additionally, DeFiLIama warns users not to use Multichain because the project itself does not currently control their products.
Data from DeFiLIama on September 20, 2023
The arrest of CEO Zhaojun
The above drops are the consequence of a chain of events triggered by the end of May 2023, when CEO Zhaojun was arrested by Chinese authorities and completely lost contact with the project. As soon as they received the information, many users sold their MULTI tokens. Meanwhile, the Fantom Foundation has withdrawn large amounts of liquidity from the pools due to concerns about the impact of the protocol.
Portrait of Multichain CEO Zhaojun
A large sum of money was withdrawn from the project
Without stopping there, in early July, Multichain witnessed the withdrawal of a large amount of cryptocurrencies from the platform, a number estimated to be up to $130 million, including many assets across several chains. The incident was so severe that two stablecoin issuers, Tether and Circle, had to freeze two transfer orders of 63 million USDC and 2.5 million USDT, respectively.
Not only that, Chainalysis, an on-chain research unit, has raised suspicions that Multichain is trying to attract users with the above methods. According to Chainalysis, in the case of Multichain, leaking the code base is completely impossible because the project has been controlled for a long time. This leaves only one possibility: the “attacker” must be someone who owns a sufficiently large number of MPC keys to have the right to access and transfer the aforementioned sum of money, no official conclusion has been drawn on this so far. this case.
Multichain has officially stopped working
Just 7 days after the above incident, the Multichain project announced its official shutdown on the project’s Twitter page (currently X). In addition to announcing the cessation of operations, the project also shared additional reasons that led to this. Specifically, Project shares that all factors determining the project’s survival are in the hands of CEO Zhaojun and when he was arrested, all computers, phones, hardware wallets and keys were stolen under the control of the Chinese government. The project also tried to contact the CEO’s family and received help from Zhaojun’s family, but this person was also arrested and thereafter lost all contact with the project.
summary
Above is general information about the Multichain project and what this name has brought to the market. Throughout its existence and development, this project has brought exceptional products to the market, solving long-standing market needs. Hopefully, through the article, Coinlive has given users the maximum overview of Multichain and what this project has brought to users and the market.
