In the past, when users wanted to transfer assets from one chain like Ethereum to other chains, they had to use an intermediary, CEX exchanges. This not only wastes time but also wastes a lot of transaction fees. Therefore, projects and products like Multichain were born to solve the above problem. However, through harsh times of the market, the name Multichain has gradually faded from the memory of many people. So what is Multichain? And what is the current situation of this project? Let's find out with Coin68 through the article below.
What is Multichain? Learn about the collapse of the platform that once led the blockchain bridge
What is Multichain?
When it first launched on the market, Multichain had a different name, Anyswap. However, after a period of operation, this project changed its name to Multichain and used this name until it officially stopped operating in July 2022. Leaving many regrets and disappointments for the user and project community.
When in operation, Multichain provides users with a series of utilities around blockchain, the most typical of which is being a cross-chain bridge, helping to transfer assets between different blockchains. At its peak, this project had a very high total trading Volume of up to 88 billion USD, supported more than 3,000 Token and achieved the TVL amount that any project dreams of, which is 2.2 billion USD. .
Multichain logo
When using Multichain, users and projects can list their own Token for free. Besides, once these Token are successfully listed, they can be completely linked to existing blockchains, thereby reducing the amount of work that projects have to do. To do that, Multichain's operating model has been established with a very simple but extremely smart mechanism. When a user wants to transfer an amount of assets from one blockchain to another, a smart contract will lock this asset and release an equivalent amount of assets on the destination blockchain.
One advantage that Multichain has brought to individual users is that it does not store user assets (Non-Custodial) to ensure a decentralized experience for users when using this platform. In addition, when swapping assets, Multichain also supports users with the fees of the original blockchain, thereby ensuring that price slippage will be zero.
Current situation of Multichain
Currently, when accessing CoinMarketCap and searching for the keyword Multichain or the project's MULTI Token , we can see that the price of this Token has lost more than 15 times its value from the time it was listed to the present. Besides, CoinMarketCap also announced that the project has now stopped operating and advises users not to use this project's products.
Data from CoinMarketCap on September 20, 2023
At the same time, on DeFiLIama, data is showing that the once-desirable amount of TVL is now only about 112 million USD, with market Capital only reaching 44 million USD. In addition, DeFiLIama also warns users that they should not use Multichain because currently the project itself does not control their products.
Data from DeFiLIama on September 20, 2023
The arrest of CEO Zhaojun
The above declines are the consequence of a chain of events triggered from the end of May 2023 when CEO Zhaojun was arrested by Chinese authorities and completely lost contact with the project . As soon as they received the information, many users sold off MULTI Token . Meanwhile, the Fantom Foundation withdrew large amounts of liquidation from the pools due to concerns about impacting the protocol.
Portrait of CEO Zhaojun of Multichain
A large amount of money was withdrawn from the project
Not stopping there, in early July, Multichain witnessed a large amount of crypto being withdrawn from the platform , an estimated number of up to 130 million USD including many assets on different chains. The incident was so serious that two stablecoin issuers, Tether and Circle, had to freeze two transfer orders of 63 million USDC and 2.5 million USDT, respectively.
Not only that, Chainalysis, an on-chain research unit, has raised the suspicion that Multichain may be trying to Rug Pull users by the above methods. According to Chainalysis, in Multichain's case, leaking the codebase is completely impossible because the project has been audited for a long time. That leaves only one possibility: the "attacker" must be someone who holds a large enough amount of MPC keys to have the right to access and transfer the above amount of money. Up to now, no official conclusion has been drawn regarding this. regarding this case.
Multichain officially stopped operating
Just 7 days after the above incident, the Multichain project announced its official shutdown on the project's Twitter page (currently X). In addition to announcing the cessation of operations, the project also Chia additional reasons leading to this. Specifically, the project Chia that all the factors that determine the project's survival are in the hands of CEO Zhaojun and when he was arrested, all computers, phones, hardware wallets, and keys were stolen. under the control of the Chinese government. The project also tried to contact the CEO's family and received help from Zhaojun's family, but this person was also arrested and lost all contact with the project after that.
summary
Above is general information about the Multichain project and what this name has brought to the market. During its existence and development, this project has brought outstanding products to the market, solving long-standing market needs. Hopefully, through the article, Coin68 has given users the most overview of Multichain as well as what this project has brought to users and the market.
