The broad confusion surrounding the Multichain protocol has continued to stir more Fear, Uncertainty and Doubt (FUD) in the digital currency ecosystem. The latest uproar in the community came from the tweet from self-proclaimed crypto market investigator, @BoringSleuth which showed the potential basis for a rug-pull.
Multichain Holds $1.8 Billion Crypto Assets
According to Boring Sleuth, Multichain holds as much as $1.8 billion in different digital currencies spread across different chains at the moment. The sleuth posits that should Multichain make a move to cart away with all of the funds as in a rug-pull, which appears to be the case, the cataclysmic effect in the market may be resounding.
Commentators have started projecting that the position of Multichain in the market and the uncertainty that comes with the team’s internal affairs and plans can fuel a UST-like rugpull which the industry is still feeling its impact lately.
The First Red Flags With Multichain
The whole assumption that the Multichain protocol is making moves to defraud their users came from the announcement that some of its cross-chain routes were unavailable due to force majeure. The protocol said at the time that it was working on getting the chains back online but has no specific timeline as to when normal operations will resume.
The protocol promised to refund users of any form of losses they might have incurred due to the event, a promise most community members believe will not be kept.
Coming off with the understanding that the industry has placed witness to several scams and rugpulls, exchanges started taking the necessary precaution to protect investors. As reported earlier by Coingape, one of the most proactive moves regarding this case was initiated by Binance exchange which blocked deposits as Multichain CEO remains nowhere to be found.
The broader crypto ecosystem is staying on high alert with many commentators already spreading the FUD so as to allow investors to protect themselves. With the leaders of the Multichain protocol now under the radar, it may become very easy to keep track of the funds under the firm’s control and perhaps, help cushion the impact of any potential rugpull that may manifest as a major crypto crash.
Multichain token ($MULTI) is down 17.32% at the time of writing to $4.43.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Leave a Reply