Fantom (FTM) Sheds 10% Following Multichain Bridge “Withdrawals”

Opeyemi Sule

1 year ago

3 mins read

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Fantom (FTM) price has been experiencing a dip in the past few days. This fall appears to have worsened in the last 24 hours due to FUD (fear, uncertainty, and doubt) spreading amongst investors.

CoinGecko data shows that the FTM token has lost 10.3% of its value in the last 24 hours. This price plunge has been linked to the movement of crypto assets from Multichain’s Fantom bridge to separate wallet addresses.

FTM Price Declines Amidst “Abnormal” Withdrawals From Multichain Bridge

There has been some uncertainty surrounding the Fantom network lately due to the “abnormal” movement of funds from its Multichain bridge – a cross-chain bridging protocol that enables the transfer of assets between different blockchains.

On July 6, over $100 million worth of crypto assets were withdrawn from Multichain’s Fantom bridge. On-chain data reveals that 7,214 Wrapped Ether (WETH) tokens (worth $13.6 million), 1,024 Wrapped Bitcoin (WBTC) (equivalent to $31 million), and $58 million worth of US Dollar Coin (USDC) were removed from the network’s multichain bridge.

Furthermore, the movement of funds from bridges of other blockchains has also been reported. Notably, Dogechain saw the withdrawal of more than $600,000 in USDC from its bridge. In addition, $4.8 million of USDC and $1 million worth of Tether (USDT) were withdrawn from Multichain’s Moonriver bridge.

Although Multichain operates on other blockchains, it is understood that the Fantom blockchain is particularly reliant on the cross-chain protocol. According to trading firm Thanefield, nearly 40% of crypto assets on Fantom (excluding its native FTM tokens) made it to the blockchain through Multichain’s bridges.

The price of FTM has been on a decline since these on-chain activities came under focus. As of this writing, the FTM token trades at $0.269819, losing more than 10% of its value in the past day.

FTMUSD trading at $0.2692 | Source: FTMUSD chart from TradingView

Fantom Spreads Calm Amidst Fears Of Exploit

In the early hours of today, Multichain took to Twitter to address these “abnormal” withdrawals, imploring its users to suspend the use of its platform. The protocol claims not to know what happened but assured its users that an investigation is ongoing.

The lockup assets on the Multichain MPC address have been moved to an unknown address abnormally.
The team is not sure what happened and is currently investigating.

It is recommended that all users suspend the use of Multichain services and revoke all contract approvals…

— Multichain (Previously Anyswap) (@MultichainOrg) July 6, 2023

This announcement comes after speculations of exploitation by the general online population. Specifically, security firm PeckShield tagged the Multichain team in a tweet, asking the protocol to look at Fantom bridge transactions. Five hours after its initial tweet, the security firm then said “It seems the hack is confirmed.”

It is worth noting that Multichain has been going through unspecified technical problems in the past few months. In May, the protocol’s team announced that it had lost contact with its CEO and was experiencing multiple issues due to unforeseeable circumstances.

That said, Fantom has released a couple of statements on Twitter to address the issue. “We are aware of a situation unfolding on the Multichain bridge. We are actively evaluating the circumstances and will provide an update as soon as we have more to share,” the first tweet read.

In another tweet, the network assured users that the FTM token was never issued or managed by Multichain. This means that WFTM (Wrapped Fantom), FTM ERC-20, and FTM on the Opera Mainnet are unaffected.

Featured image from Fantom, chart from TradingView

Opeyemi Sule

Opeyemi is a proficient writer and enthusiast in the exciting and unique cryptocurrency realm. While the digital asset industry was not his first choice, he has remained absolutely drawn since making a foray into the space over two years. Now, Opeyemi takes pride in creating unique pieces unraveling the complexities of blockchain technology and sharing insights on the latest trends in the world of cryptocurrencies.

Opeyemi savors his attraction to the crypto market, which explains why he spends the better parts of his day looking through different price charts. “Looking” is a rather simple way to describe analyzing and interpreting various price patterns and chart formations. However, it appears that is not Opeyemi’s favorite part - in fact, far from it.

Being able to connect what happens on a price chart to on-chain movements and blockchain activities is what keeps Opeyemi ticking. “This emphasizes the intricacies of blockchain technology and the cryptocurrency market,” he would say. Most importantly, Opeyemi thinks of any market insights as the gospel, while recognizing that he is only a messenger.

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Opeyemi recognizes the need to constantly develop oneself in order to stay afloat in a competitive and ever-evolving market like crypto. For this reason, he is always in learning mode, ready to pick up the slightest lesson from every situation. Opeyemi is efficient and likes to deliver all that is required of him in time - he believes that “whatever is worth doing at all is worth doing well.” Hence, you will always find him striving to be better.

Ultimately, Opeyemi is a good writer and an even better person who is trying to shed light on an exciting world phenomenon - cryptocurrency. He goes to bed every day with a smile of satisfaction on his face, knowing that he has done his bit of the holy assignment - spreading the crypto gospel to the rest of the world.

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