Multichain Rumors: A Crisis Analysis

GM Readers!📪 It's BitDegree Insider, and you know what time it is.

⭐️Today's selection:

• ⛓Multichain - What's Going On?
• ❓Price Dilemma
• 🧩️Answer To Thursday Quiz
• 👌Selected Meme of The Day
• 📰Bite-Sized News

MULTICHAIN - WHAT'S GOING ON?

Let's talk about Multichain.

Reminder: Multichain is an infrastructure developed for arbitrary cross-chain interactions. Essentially, a cross-chain bridge architecture provider. The crossroad of Web3…

And there's something really sus going on with it right now. Let's take an in-depth look into it.

On May 21, Multichain users noticed that transactions would get stuck due to an error during a network update.

The technical team acknowledged the issue, stating it was due to maintenance on the cross-chain router nodes.

As days passed, the problem was not solved. 

Cryptobros began to complain that they could not withdraw their money for the third day in a row, and on-chain detectives from Lookonchain noticed large movements of the MULTI token reserves.

For instance, $2.75 million was withdrawn to the Gate.io exchange.

In addition to all these events, rumors started spreading across the media.

The word on the street is the entire Multichain team was arrested by police in mainland China along with $1.5 billion in contract funds.

The founder of VC Primitive Ventures (those who invested into Multichain) indirectly confirmed these rumors on Twitter:

But then… she denied the rumors about arrest.

During this tumultuous period, the value of the MULTI token took a significant hit.

Apart from that, Fantom Foundation pulled out $2.4 million from liquidity on Sushiswap.

Binance suspended deposits in SPELL, ALPACA, FTM, POLS, ACH, BIFI, SUPER, AVA, FARM, and DEXE tokens.

Later, the Multichain team promised all users compensation for this force majeure, which partially revived the token price.

At this point, it seemed that the troubles around Multichain had ended…

However, just when it seemed that Multichain had weathered the storm on May 31…

The Multichain team officially announced that their CEO had disappeared without a trace, and some protocol routers no longer work, since only the CEO had access to the necessary servers.

This latest revelation has further destabilized the value of the token.

While the project's future is uncertain, it's worth noting that Multichain, previously known as Anyswap, had managed to attract a substantial investment of $60 million in 2021, indicating that they've got a robust technological infrastructure.

Quite obviously… The situation is tricky and far from clear. But… Now you know that no one knows, lol.

TL;DR: Multichain, a cross-chain infrastructure provider, experienced technical issues and users were unable to withdraw funds. Large token reserves were moved, sparking rumors of the team's arrest and loss of funds. On May 31, the company's CEO disappeared, and some protocol routers stopped working, further impacting the token's value.

PRICE DILEMMA

So, CZ, The CEO of Binance, posted this:

What did CZ mean?

Beginner investors often hold the stereotype that experienced holders have an easy time buying crypto at its lowest point and waiting for it to reach new heights. Or they just got lucky.

But in reality, buying during a correction or a "crypto winter" is much harder than buying crypto during a growth phase.

This is because it involves overcoming your emotions and buying with the understanding that the rate might drop even lower tomorrow.

Furthermore, during an emotionally unpleasant time in the market, everyone around is fueling negativity, predicting further declines and the "death" of crypto.

This is the most difficult time for investments, yet such decisions can pay off handsomely in the future.

NFA! And, after a few years it may turn out that $60,000 for 1 Bitcoin was too cheap. Or it may not. You know that you can never know.

TL;DR: Buying crypto during a market correction or "crypto winter" is challenging due to the need to overcome emotions, uncertainty about further price drops, and negative sentiments from others, but making such investments can be highly rewarding in the long run.

ANSWER TO YESTERDAY'S QUIZ

Yesterday we asked you about a nice period from the past. The question sounded like this:

"During the summer of 2020, a trend in the crypto world took off. It was largely centered around the Ethereum network. What was this trend known as?"

We got creative and made up some ridiculous, yet wrong answers. And, as always, our readers have proved to be a serious audience.

The right answer was DeFi Summer, and the majority of you got it right! Congrats! And, yes, the unicorn was a hint about Uniswap! It was the most used dApp throughout the summer of 2020.

SELECTED MEME OF THE DAY

BITE-SIZED NEWS

• PwC China and Standard Chartered Advocate for CBDC in China's Greater Bay Area. A white paper is about to be produced.
• Twitter Account of OpenAI CTO Breached, Promotes Fraudulent Crypto Airdrop. Over 126,000 followers were exposed to the scam promotion.
• EA Sports Games to Incorporate Nike's Unique NFT Platform, .Swoosh. FIFA is about get way more personalized.