- Foundation withdrew $2.4 million of MULTI
- André Cronje said it was due to the uncertainty surrounding Multichain
- He added that the tokens are sitting on the wallet, no one has sold them
- The protocol is currently still idle
Director of Fantom Foundation Andre Cronje explained why the foundation withdrew its funds from pools on SushiSwap and stopped providing liquidity to MULTI.
According to Andre, this was due to the uncertainty surrounding Multichain. The protocol is currently still idle in three of its routes due to an unclear “force majeure.”
On May 24, the Fantom Foundation withdrew about $2.4 million from MULTI, the native token of the Multichain protocol.
“No point in doing LP in times of uncertainty.
You can see in the wallet that the funds have not been sold, as soon as Multichain can release a statement about this and clarify the situation, we will run LP again,” Cronje said.
The Multichain crosschain protocol has not run any transactions for five days.
However, it still has several bridges – Kava, zkSync, Polygon zkEVM – that are now suspended.
On May 24, the protocol experienced transaction delays, causing the MULTI token to lose more than 20% of its value.
The first reason for the stoppage was due to an update, but yesterday the explanation was changed to an ambiguous “force majeure.”
Multichain promised to pay compensation to users affected by the hanging transactions in the blockchain today.