Beginning July 7, 2023, Binance will discontinue the processing of deposits and withdrawals for numerous cross-chain bridge tokens linked to the Multichain project across specified networks. This suspension will persist until further notice.
The choice to suspend support for these tokens follows recent complications with the Multichain (MULTI) protocol, which initially prompted the suspension of deposits for multiple Multichain-bridged tokens on May 24, 2023.
According to the announcement, this suspension will impact a variety of tokens created on Multichain across different networks.
Tokens deployed on the BNB Smart Chain, including Polkastarter (POLS), Alchemy Pay (ACH), Beefy.Finance (BIFI), and Harvest Finance (FARM), will be notably affected by the suspension. Additionally, tokens minted through the bridge on Fantom, such as Beefy.Finance (BIFI) and Alpaca Finance (ALPACA), are included in the list of impacted tokens. Furthermore, Travala (AVA), a token minted on Ethereum’s bridge, will also be subject to suspension during this period.
May Meltdown: Multichain (MULTI) Protocol’s Price Plummets 30% in a Day
On May 24, 2023, the Multichain (MULTI) token witnessed a sharp decline of 30% in its price within a single day, plummeting to a trading value of $4.97. Despite this significant sell-off, data from DeFiLlama indicates that the Multichain protocol, established in July 2020 in Singapore to address the demand for inter-blockchain communications, has managed to maintain its Total Value Locked (TVL) at $1.3 billion.
The sell-off is attributed to delays resulting from a backend node upgrade, which took longer than anticipated. This delay prompted complaints from users who experienced delays in the arrival of their Multichain funds, leading to heightened panic and a subsequent increase in the selling of the token.
The sell-off was exacerbated by rumors circulating on various social media platforms. An administrator addressed the situation on the Multichain Discord channel, explaining that while most routes typically operate smoothly, specific routes, including Kava, zkSync, and Polygon zkEVM, were temporarily suspended during the upgrade.
Despite encountering these challenges, the Multichain protocol demonstrated resilience in the face of market turbulence and speculation. The Total Value Locked (TVL) for the Multichain protocol remained stable at $1.6 billion, underscoring the project’s ability to weather disruptions and maintain its overall strength amid adverse conditions.
Users Can Still Trade Unaffected Tokens from the Multichain Bridge Assets
Binance has implemented a suspension on assets associated with the Multichain Bridge, without explicitly specifying the exact reason for this action. This suspension follows a prior measure taken against Multichain on May 25, during which Binance temporarily ceased support for deposits of specific tokens transferred through Multichain due to complications with the Multichain protocol.
Despite the ongoing suspension of the Multichain project, Binance reassures its users that they can still deposit and withdraw the affected tokens using other networks supported by the exchange. Therefore, as long as the transactions do not involve the Multichain project, the assets can continue to operate without interruption.