The Multichain cross-chain protocol’s native digital currency, MULTI, has had a 23% price decline in the previous 24 hours and is now seeing the most significant negative price movements. The cryptocurrency is currently trading at $3.88 due to the price collapse, however there is a lot of FUD (Fear, Uncertainty, and Doubt) in the market.
Earlier last week, the Multichain protocol disclosed that a force majeure incident had rendered part of its chain transactions unusable. With several theses predicting an impending rug pull, this incident signalled the start of the protocol’s problems.
TruthLabs reported how Multichain has amassed a total of $1.8 billion split over multiple chains other than Fantom, as pointed out by one self-described on-chain investigator on Twitter. According to the detective’s calculations, Multichain might be involved in a possible rug-pull, which, if it does, could trigger the worst market crisis since Terraform Labs’ demise last year.
Although Multichain stated that it intended to pay its subscribers who were impacted by the force majeure, the community is noticeably pricing in the FUD. The MULTI token has decreased by more than 52% during the previous seven days.
Source of crypto winter trigger?
The disappearance of the platform’s major creators made the Multichain protocol’s problems worse. As a result, cryptocurrency exchanges like Binance stopped accepting deposits of assets into the system until the developers offered more explanation.
In order to avoid becoming involved in a bankruptcy situation that may first render the MULTI token useless and subsequently expose users to countless losses, several companies are currently adopting safeguards with Multichain.
Stakeholders are doing everything they can to prevent a major incident that might prolong the crypto winter since the sector has recently seen its most challenging period since the FTX meltdown.
