FUD Or Reality? Multichain Crew Arrested, On-Chain Knowledge Uncovers Fantom Publicity To Wrapped Tokens

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FUD Or Reality? Multichain Crew Arrested, On-Chain Knowledge Uncovers Fantom Publicity To Wrapped Tokens


Rumors of the arrest of the Multichain staff have despatched shockwaves all through the Fantom ecosystem. Regardless of buying and selling volumes of $129 million, the concern, uncertainty, and doubt (FUD) have resulted in a 5x enhance in day by day bridging volumes. Nonetheless, upon nearer examination of the on-chain knowledge, the bridging volumes don’t present a major signal of panic.

Fantom’s Dangerous-Wrapped Token Publicity

Based on a Twitter thread by the crypto researcher DeFi Ignas, Fantom (FTM) is essentially the most uncovered to Multichain’s wrapped tokens. This implies that Fantom is especially susceptible to any damaging affect that will outcome from the rumored arrest of the Multichain staff. It is because Fantom has vital publicity to Multichain’s wrapped tokens, with 35% of its complete worth locked (TVL) depending on these wrappers.

Fantom’s share in Multichain. Supply: Apes Prologue on Twitter.

As well as, Multichain points 40% of non-FTM belongings, which is equal to a large $650 million. Because of this if something had been to occur to Multichain, it may have a major affect on the general worth of those belongings.

Moreover, Multichain handles 81% of Fantom’s complete stablecoin market capitalization. Stablecoins are digital belongings which might be pegged to the worth of a real-world asset, such because the US greenback. They’re usually used as a strategy to hedge towards market volatility. Nonetheless, If something had been to occur to Multichain, it may have a major affect on the worth of those stablecoins and trigger instability within the Fantom ecosystem.

Fantom Traders Keep Calm Amid Multichain Arrest Rumors

Based on Ignas, there ought to have been a major outflow of Complete Worth Locked from Fantom resulting from its reliance on Multichain. Nonetheless, the information reveals that the quantity withdrawn was just one% of its complete TVL of $1.78 billion, which signifies that there’s not a lot panic out there.

Fantom
Fantoms deposits and withdraws after the Multichain staff arrest rumors. Supply: DeFi Ignas on Twitter.

Moreover, whereas the TVL has dropped by 9.55% in USD, adjusting for the worth of FTM reveals no vital outflow of capital. The clearest and solely signal of panic is the Multichain Liquidity Suppliers (LPs) on Fantom, with a complete of $33 million being withdrawn by LPs from Fantom, and solely $1.7 million in deposits.

Nonetheless, what’s most worrying is the shortage of communication from the Multichain staff. It has been reported that the present Multichain CEO Zhaojun hasn’t been on-line in every week. This has left many buyers and merchants within the cryptocurrency market feeling unsure about the way forward for the venture.

Moreover, Multichain has reported that among the cross-chain routes are unavailable resulting from drive majeure and that Kava, zkSync, and Polygon zkEVM routes had been briefly suspended. There have been additionally 83 transactions pending for greater than a day, which has raised additional issues amongst buyers and merchants.

Fantom
FTM’s downtrend on the 1-day chart. Buying and selling at $0.3329. Supply: FTMUSDT on TradingView.com

Featured picture from Unsplash, chart from TradingView.com 

 





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