Binance Halts Transfers of Multichain-Linked Tokens Following May Incident – Here's the Latest
Starting July 7, 2023, Binance will cease to facilitate deposits and withdrawals of several cross-chain bridge tokens associated with the Multichain project across specified networks.
This suspension will remain in effect until further notice.
The decision to suspend support for these tokens comes after the recent issues with the Multichain (MULTI) protocol, leading to the earlier suspension of deposits for multiple Multichain-bridged tokens on May 24, 2023.
As per the announcement, the suspension will affect a range of tokens created on Multichain across various networks.
Notably, tokens deployed on BNB Smart Chain, including Polkastarter (POLS), Alchemy Pay (ACH), Beefy.Finance (BIFI) and Harvest Finance (FARM) will be impacted.
Additionally, tokens minted through the bridge on Fantom, such as Beefy.Finance (BIFI) and Alpaca Finance (ALPACA) are also included in the list of affected tokens.
Furthermore, Travala (AVA), a token minted on Ethereum's bridge, will also be subject to suspension.
On May 24, 2023, the price of the Multichain (MULTI) token plummeted by 30% within a single day, reaching a trading value of $4.97.
According to DeFiLlama, despite experiencing a notable sell-off in May, the Multichain protocol, established in July 2020 in Singapore to address the demand for inter-blockchain communications, has maintained its Total Value Locked (TVL) at $1.3 billion.
The sell-off can be traced back to delays caused by a backend node upgrade, which took longer than expected.
This delay resulted in some users complaining that their Multichain cash had not arrived promptly, leading to increased panic and selling of the token.
The sell-off was further fueled by rumors circulating on social media platforms.
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