Fantom's price (FTM) sinks due to withdrawals from the MultiChain Bridge

Fantom's price (FTM) sinks due to withdrawals from the MultiChain Bridge

Price of Fantom (FTM) sinks due to withdrawals from the MultiChain Bridge

By moving crypto-assets from the Fantom Bridge from MultiChain to separate wallet addresses, the price of Fantom (FTM) has recorded a decline in the past few days. According to the data from Coingecko, the FTM token has lost 10.3 % of its value in the last 24 hours.

The movement of funds from the MultiChain bridge caused uncertainty in the Fantom network. MultiChain is a cross -chain bridge protocol that enables the transfer of assets between different blockchains. On July 6, over $ 100 million at crypto-assets were deducted from the Fantom Bridge from MultiChain. Among them were Wrapped Ethereum (Weth)-token worth $ 13.6 million, Wrapped Bitcoin (WBTC) worth $ 31 million and US dollar coins (USDC) worth $ 58 million

Bridges of other blockchains were also affected. Over $ 600,000 in USDC was deducted from the Dogechain Bridge. USDC worth $ 4.8 million and Tether (USDT) worth $ 1 million from the MOONRIVER bridge from MultiCHAIN.

The Fantom blockchain is strongly dependent on the cross-chain protocol from MultiChain. According to the retail company Thanefield, almost 40 % of the crypto-assets reach Fantom over the bridges of MultiChain into the blockchain.

Since the withdrawals have gained attention, the price of FTM has dropped. The FTM token is currently being traded at $ 0.269819 and has lost over 10 % of its value in the last 24 hours.

The multichain protocol pointed out the unusual withdrawals on Twitter and temporarily suspended the use of its platform. However, it is not to know what exactly happened, but an investigation is carried out. The security company Peckshield has pointed out potential exploitation, and five hours later it was confirmed that a hack actually took place.

The Fantom network has published statements on Twitter to tackle the problem. It emphasizes that the FTM token has never been output or managed by MultiChain, so WFTM, FTM ERC-20 and FTM are not affected in the Opera Mainnet.

It is worth noting that MultiChain has already had technical problems in recent months, including the loss of contact with CEO. Fantom and the companies involved are active to solve the problem and will provide further updates.

Please note that the information in this article only serves for information purposes and do not represent investment advice. Trading and investing in cryptocurrencies are associated with risks and can lead to the loss of the capital used.