The multichain community hasn’t received any updates on the whereabouts of the project’s co-founder, Zhaojun, for a week. Despite this uncertainty, the platform’s altcoin project has been on the rise. Here are the details…
Altcoin project rises despite all events
The token price of the cross-chain protocol Multichain, the protocol is still partially offline with no clear explanation. However, it has risen 35 percent in the last 24 hours. When reports of transaction problems first surfaced and rumors spread that the team may have been arrested in China, the protocol’s native token dropped from $8 to as low as $3.30 within days. However, in the last day, the token price rose to $5.18 and settled at its current price of $4.61.
It’s unclear what caused the price spike as there has been no update from Multichain on where the team is. Multichain’s VP of Strategic Partnerships, who goes by the name Mog, said today in the official Multichain Telegram group that he will “let me know when he has it”. On the project’s Telegram and Discord channels, users still want answers. They also question what the project’s “force majeure” tweet actually means.
An admin named Meng on the project’s Chinese Telegram channel said users should “wait for Zhaojun to return.” He apparently referred to the protocol’s ability to sign transactions related to upgrade partitions. Zhaojun is the co-founder of the project and has been quiet during this time. Over the past week, various crypto organizations have taken action to reduce exposure to the Multichain protocol, its native token, and tokens issued through its protocol. These include the Phantom Foundation, Binance, Hashkey Group, Justin Sun, founder of Tron, and the Conflux network.
What had happened?
In response to the recent “force majeure” event affecting Multichain and the consequent concerns about USDC stability, as we reported on Kriptokoin.com, the LayerZero cross-chain bridge protocol Stargate has proposed a comprehensive plan to protect its ecosystem. To mitigate risks and ensure integrity, Stargate has submitted a proposal that includes disabling the Fantom USDC pool and removing all DAO-controlled funds from the pool.
LayerZero cross-chain bridge protocol Stargate has proposed a comprehensive plan to protect its ecosystem amid the Multichain crisis. Stargate aims to deactivate the Phantom USDC pool and remove all DAO-controlled funds from the pool in response to concerns over USDC stability. Stargate’s proposal also includes measures to mitigate any potential USDC related issues on the Phantom network. They propose removing and resolving any USDC POL via Multichain, thus eliminating potential risks from the crisis. Also, Stargate recognized the need to expand bridging options for Phantom users via alternative means such as Hydra. Time will tell what will happen in the future.
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