The Phantom Foundation pulled millions of dollars of liquidity from a trading pool in the altcoin project’s native token on Wednesday. This raised concerns about the stability of the cross-chain bridge protocol.
Phantom Foundation launches $2.4 million MULTI
According to Etherscan, a foundation-controlled wallet has withdrawn approximately 450,000 MULTI and 1,363 ETH from a liquidity pool on the decentralized exchange SushiSwap. Cross-chain researcher Lookonchain marked the move as the first. The Phantom Foundation has yet to respond to a request for comment.
As we reported on cryptokoin.com, the withdrawal of liquidity came as Multichain users reported days of delay in withdrawing crypto assets from the protocol that helps them move their assets between the Fantom and Ethereum ecosystems. Altcoin developers reported a “longer-than-expected” upgrade to the community on May 21. Meanwhile, Multichain representatives have not yet made a statement on the subject.
However, the Phantom Foundation still holds its MULTI. Nansen reported that other top holders are sending Multichain’s governance token to exchanges. He also noted that among them was a whale with 494,200 tokens ($2.75 million), as well as digital asset firm Hashkey Capital, whose position was valued at $221,000 at the time. Large on-chain moves coincide with a drop in MULTI’s transaction price. According to press time, the altcoin price has dropped more than 28.5% in the past 24 hours to $5.04.
Last minute: Altcoin project responds!
Meanwhile, Multichain’s VP of strategic partnerships, nicknamed Mog, said, “The bridge/swap is working as usual. Only Router2 routing is [currently] waiting to be upgraded. He explained that 99% of other redirects/token bridges work as intended.
“Most of the cross-chain routes of the Multichain protocol are working well,” he wrote on his Multichain Twitter account. However, some cross-chain routes are unavailable due to force majeure. Also, the duration of service is unknown. After the service is restored, pending transactions will be automatically credited.” Multichain also stated that it will reimburse affected users “throughout this process,” with an official plan to be announced in the future.
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