Multichain Team Arrested: Fact Or FUD? Fantom's Wrapped Tokens Exposed
People are worried that the Multichain team is arrested. This news is making the Fantom ecosystem upset. Even though there have been exchanges worth $129 million, people are still worried. This has made people move more money between different platforms. But, when we look at the data carefully, it doesn't seem like people are panicking too much.
"Fantom's Token Exposure: A Risky Wrap"
DeFi Ignas tweets that Fantom (FTM) is highly connected to Multichain’s wrapped tokens. This makes it more affected if the Multichain team gets arrested. Fantom relies on Multichain’s wrapped tokens, with 35% of its total value locked (TVL) involved in these wrappers. Therefore, any negative issues with Multichain could impact Fantom.
Multichain creates 40% of non-FTM assets. This is worth $650 million. If something happens to Multichain, it would affect the value of these assets.
Multichain controls most of Fantom's stablecoin market cap. Stablecoins are digital assets tied to real-world assets, like USD. They reduce market volatility. But, Multichain issues are risky for stablecoins and the Fantom ecosystem. Any impact to Multichain can cause instability.
Fantom Investors Unfazed By Arrest Rumors
Ignas thought Total Value Locked in Fantom would decrease because it depends on Multichain. But, just 1% of the $1.78 billion was taken out. This shows people aren't worried.
The TVL dropped by 9.55% in USD. But, adjusting for the price of FTM didn't show any major loss of money. The only sign of panic is the LPs on Fantom. They withdrew $33 million and only deposited $1.7 million.
The Multichain team isn't communicating enough, which is a big problem. People are worried because the CEO Zhaojun hasn't been online for a week. Investors and traders don't know what's going to happen next with the project. It's all very uncertain.
Multichain said that some cross-chain routes are unavailable due to unavoidable circumstances. Kava, zkSync, and Polygon zkEVM routes were temporarily suspended. There were also 83 transactions pending for more than a day, which has worried investors and traders.
Picture from Unsplash, chart on TradingView.com.
Ronaldo loves crypto for over four years. He likes DeFi to control money. He thinks DeFi can change finance. He's always learning more about DeFi.
