Fantom Foundation Removes $2.4M MULTI from SushiSwap Liquidity Pool

Multichain’s current upgrade is taking longer than expected, causing delays in their transactions.

AccessTimeIconMay 24, 2023 at 3:32 p.m. UTC
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The Fantom Foundation – the team developing the Fantom blockchain – removed millions of dollars in liquidity from a trading pool for the native token of Multichain on Wednesday, compounding concerns over the cross-chain bridging protocol’s stability.

According to Etherscan, a wallet controlled by the foundation removed nearly 450,000 of MULTI and 1,363 ether from a liquidity pool on decentralized exchange SushiSwap. On-chain researcher Lookonchain first flagged the movement. The Fantom Foundation did not immediately respond to a request for comment.

The liquidity removal comes as users of Multichain report days of delays in withdrawing their crypto assets from the protocol, which helps them move assets between the Fantom and Ethereum ecosystems. Multichain developers notified the community of a “longer than expected” upgrade on May 21. Multichain representatives did not immediately respond to a request for comment.

While Fantom Foundation is still holding onto its MULTI, Nansen reports that other top holders have been sending Multichain’s governance token to exchanges, including one whale with 494,200 tokens ($2.75 million) as well as digital asset firm Hashkey Capital, whose position was worth $221,000 at the time.

The major on-chain moves correspond with a plummet in MULTI’s trading price. At press time it had fallen over 28.5% in the past 24 hours, down to $5.04.

Edited by Danny Nelson.

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Sage D. Young

Sage D. Young was a tech protocol reporter at CoinDesk. He owns a few NFTs, gold and silver, as well as BTC, ETH, LINK, AAVE, ARB, PEOPLE, DOGE, OS, and HTR.


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