Andre Cronje comments on Multichain crisis: Multi-chain stablecoins may be affected.

Andre Cronje denied the claims that Fantom would be affected, and suggested that multi-chain issued USDC, DAI, and wBTC are more likely to be impacted.

Multichain Fails to Explain the Cause of the Malfunction

There have been delays in cross-chain transactions on Multichain for several days, with users complaining since May 21. The price of MULTI tokens has also been declining since the 21st.

On the 23rd, Multichain stated that "the upgrade time of the backend nodes took longer than expected," and most cross-chain routes are still operating normally, while some Kava, zkSync, and Polygon zkEVM are temporarily suspended.

The team's silence, coupled with large transactions being monitored on some chains, led to a flurry of rumors on Twitter by key opinion leaders starting on the 24th. However, Multichain only released one tweet after the fact.

Despite Binance being one of Multichain's investors in the past, they have chosen to suspend related cross-chain services due to the team's silence.

For previous reports, please refer to: Multichain Update | Binance has suspended related cross-chain asset deposits, community eagerly awaits official response

Multichain Holds Nearly 40% of Fantom's Issued Assets, AC Not Worried

Community analysis and data from The Block indicate that nearly 40% of assets on the Fantom chain are issued by Multichain.

Assets issued by Multichain account for 78% of the total asset market value on the Fantom chain.

The dependency between the two has the community concerned about whether Fantom will be affected.

Andre Cronje, a board member of the Fantom Foundation, told The Block that he is not worried:

Fantom has withdrawn 449,740 MULTI tokens from SushiSwap, and you can see that the assets are still in the on-chain wallet, not yet sold. Once Multichain is able to issue a statement and resolve the issue, we will provide liquidity again.

Regarding the intertwined issuance of assets on the chains, AC believes that assets are calculated through multiple parties, and Fantom's cross-chain bridge is not affected. If any project is indeed affected, it may also involve multi-chain issuances such as USDC, DAI, and wBTC.