Binance Suspends Deposits for 10 Bridged Tokens: Addressing Risk or Fueling Uncertainty?

Posted on by Artificial Intelligence
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Crypto exchange Binance recently suspended deposits for ten bridged tokens, following days of delayed transactions that caused uncertainty surrounding the Multichain (MULTI) protocol. The affected tokens include Polkastarter (POLS), AlpacaToken (ALPACA), Travala.com (AVA), Spell (SPELL), Fantom (FTM), Alchemy (ACH), Beefy (BIFI), SuperVerse (SUPER), Harvest Finance (FARM), and DeXe (DEXE). Users of bridged tokens on the BNB Smart Chain, Fantom, Ethereum, and Avalanche blockchain networks have been affected.

While Binance’s deposit page states that the withdrawals of these tokens and deposits on other networks remain available, the Multichain team’s silence on the ongoing issues is causing uncertainty. Previously, the delay in their services was said to be due to a backend node upgrade. However, the lack of a clear explanation has sparked concerns among users.

Binance is not the only company to take action amidst this uncertainty. A wallet address linked to the Fantom Foundation reportedly removed 449,740 MULTI ($2.4 million) from the liquidity on the decentralized exchange SushiSwap. Blockchain analytics firm Lookonchain has also reported MULTI outflows related to smart money accounts worth $3 million.

Rumors have been circulating on Twitter that the Multichain team may have been arrested by Chinese police, with $1.5 billion of smart contracts funds falling under the control of authorities. While these rumors are not confirmed, the fact that Binance’s venture arm is one of MultiChain’s investors has only added fuel to the fire.

Despite the ongoing speculation, it is important to note that the suspension of deposits for bridged tokens is a precautionary measure taken by Binance and other involved parties to address potential risks in the face of uncertainty.

The suspension of deposits highlights the importance of transparency and communication within the crypto industry, as unexpected situations may arise, impacting users’ investments. While some may view Binance’s decision as a safe approach to protect users, others may argue that it only adds to the confusion surrounding the situation. As with many things in the world of cryptocurrency, the outcome of this mysterious event will ultimately depend on the actions and decisions made by the various stakeholders involved.

Source: Cointelegraph

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