FUD Or Fact? Multichain Team Arrested, On-Chain Data Uncovers Fantom Exposure To Wrapped Tokens

Name	Symbol	Market	Market Cap ($)	Algorithm
Polygon	MATICUSD	Crypto	6,570,467,456	Not Mineable

Name

Symbol

Market

Market Cap ($)

Algorithm

Polygon

MATICUSD

Crypto

6,570,467,456

Not Mineable

	Price Change	Price Change %	Current Price	Bid Price	Offer
	-0.0117	-1.62%	0.7088	0.7084	0.7086

Price Change

Price Change %

Current Price

Bid Price

Offer

-0.0117

-1.62%

0.7088

0.7084

0.7086

High Price	Low Price	Open Price	Prev. Close	52 Week Range
0.732	0.6994	0.7214	0.7205	0.492200 - 1.29

High Price

Low Price

Open Price

Prev. Close

52 Week Range

0.732

0.6994

0.7214

0.7205

0.492200 - 1.29

Exchange	Last Trade	Size	Trade Price	Currency
GDAX	18:37:48	18.90	0.7088	USD

Exchange

Last Trade

Size

Trade Price

Currency

GDAX

18:37:48

18.90

0.7088

USD

Price x Volume	Volume	Base Symbol	Related Pairs
4,409,506.27	6,158,759.48	MATIC	MATICEUR	MATICGBP	MATICBTC

Price x Volume

Volume

Base Symbol

Related Pairs

4,409,506.27

6,158,759.48

FUD Or Fact? Multichain Team Arrested, On-Chain Data Uncovers Fantom Exposure To Wrapped Tokens

25/05/2023 11:00pm

NEWSBTC

Rumors of the arrest of the Multichain team have sent shockwaves throughout the Fantom ecosystem. Despite trading volumes of $129 million, the fear, uncertainty, and doubt (FUD) have resulted in a 5x increase in daily bridging volumes. However, upon closer examination of the on-chain data, the bridging volumes do not show a significant sign of panic. Related Reading: Chainlink (LINK) Under Bearish Strain As Selling Pressure Mounts Fantom’s Risky-Wrapped Token Exposure According to a Twitter thread by the crypto researcher DeFi Ignas, Fantom (FTM) is the most exposed to Multichain’s wrapped tokens. This suggests that Fantom is particularly vulnerable to any negative impact that may result from the rumored arrest of the Multichain team. This is because Fantom has significant exposure to Multichain’s wrapped tokens, with 35% of its total value locked (TVL) dependent on these wrappers. In addition, Multichain issues 40% of non-FTM assets, which is equivalent to a sizable $650 million. This means that if anything were to happen to Multichain, it could have a significant impact on the overall value of these assets. Furthermore, Multichain handles 81% of Fantom’s total stablecoin market capitalization. Stablecoins are digital assets that are pegged to the value of a real-world asset, such as the US dollar. They are often used as a way to hedge against market volatility. However, If anything were to happen to Multichain, it could have a significant impact on the value of these stablecoins and cause instability in the Fantom ecosystem. Fantom Investors Stay Calm Amid Multichain Arrest Rumors According to Ignas, there should have been a significant outflow of Total Value Locked from Fantom due to its reliance on Multichain. However, the data shows that the amount withdrawn was only 1% of its total TVL of $1.78 billion, which indicates that there is not much panic in the market. Furthermore, while the TVL has dropped by 9.55% in USD, adjusting for the price of FTM shows no significant outflow of capital. The clearest and only sign of panic is the Multichain Liquidity Providers (LPs) on Fantom, with a total of $33 million being withdrawn by LPs from Fantom, and only $1.7 million in deposits. However, what is most worrying is the lack of communication from the Multichain team. It has been reported that the current Multichain CEO Zhaojun hasn’t been online in a week. This has left many investors and traders in the cryptocurrency market feeling uncertain about the future of the project. Related Reading: Bitcoin Bearish Signal: NUPL Finds Rejection At Long-Term Resistance Additionally, Multichain has reported that some of the cross-chain routes are unavailable due to force majeure and that Kava, zkSync, and Polygon zkEVM routes were temporarily suspended. There were also 83 transactions pending for more than a day, which has raised further concerns among investors and traders. Featured image from Unsplash, chart from TradingView.com

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