Multichain token plunges 28% amid network glitches

Users of the cross-chain protocol Multichain (MULTI) began reporting transactions stuck in the blockchain due to an error during the network update.

The problem emerged on May 21. The project team said the difficulties arose during technical work on the cross-chain router nodes.

«The update of the internal node is taking longer than expected. Most routers are operating normally, but some of them (Kava, zkSync, Polygon zkEVM) have been temporarily suspended. All affected transactions will be posted after the update is completed», — предупредили developers on May 23.

According to a Telegram channel statement, as of May 24 only one problematic node remained, the other six are “working normally”. Multichain assured that all user funds are safe.

Against the backdrop of the network issues, the native MULTI token price fell 28.3% in 24 hours. According to data from CoinGecko, at the time of writing the asset was trading at $5.05.

Lookonchain analysts found that several large investors began moving their token holdings. One of them sent 494,200 MULTI ($2.75M) to Gate.io.

We noticed that some investors have sold $MULTI.#MultiChain

0xb4df(maybe an investor) deposited 494,200 $ MULTI($2.75M) to #Gateio 3 hrs ago.

Hashkey deposited 43,928 $ MULTI($247K) to #Gateio 1 hr ago.

hwg.eth is very smart and sold 36,243 $MULTI ($200K) yesterday. pic.twitter.com/nBsR4aWaJt

— Lookonchain (@lookonchain) May 24, 2023

Experts also recorded two transfers of 43,928 MULTI ($247,000) and 36,243 MULTI ($200,000).

Lookonchain noted that the Fantom Foundation removed 450,000 protocol tokens ($2.4M) from its portfolio on the decentralized exchange SushiSwap.

Note that Fantom Foundation Wallet has removed 449,740 $MULTI ($2.4M) from liquidity on Sushiswap 30 mins ago.

Very likely to sell off! #MultiChain https://t.co/pEcd5EmARb pic.twitter.com/M647xgOeNH

— Lookonchain (@lookonchain) May 24, 2023

Back in January 2022, an unknown took advantage of an exploit in Multichain, stealing around $3 million from users. In the end the hacker decided to return the stolen funds in exchange for a reward of 50 ETH.