Identifying potential shifts in the crypto market can be a dicey game, but let’s moot the point with Binance‘s recent decision and its broader implications. Coming July 7, 2023, this crypto exchange giant is set to halt operations regarding deposits and withdrawals of specific cross-chain bridge tokens tied to the Multichain project. This suspension is not the first, considering the unresolved issues that surfaced with the Multichain protocol leading to an earlier interruption on May 24, 2023.
Diving deeper, the suspension hits several tokens created on Multichain, importantly those on BNB Smart Chain. Some, including Polkastarter (POLS), Alchemy Pay (ACH), Beefy.Finance (BIFI), Harvest Finance (FARM), and others minted through Fantom’s bridge and Ethereum’s bridge, face repercussion.
Injecting some history, May 24, 2023, etched itself in memory as the day when Multichain’s price drowned by 30% within 24 hours, landing at a mere $4.97. Despite the severe sell-off, Multichain, established in July 2020 in Singapore, successfully held its Total Value Locked (TVL) at $1.3 billion, indicating a resilient structure.
The cause for the sell-off conflates to a backend node upgrade that lingered longer than anticipated. This setback triggered panic among users worried about their delayed Multichain cash, and was further magnified by social media rumors. An administrator tackled the situation stating detours in specific routes including Kava, zkSync, and Polygon zkEVM during the upgrade. Yet, the TVL managed to remain stable at $1.6 billion.
But what triggered Binance’s decision to suspend? That remains a tight-lipped affair without clear reasoning. The suspension is merely an extension of a previous step taken against Multichain on May, 25 due to complications with the protocol.
However, amidst the uncertainty, there’s a silver lining for Binance users. The crypto exchange affirms that users can still deposit and withdraw the affected tokens via other supported networks as long as they do not involve the Multichain project, ensuring continued, albeit modified, operation of these assets. This move begs the question, is it a cautionary transition given the recent pitfalls, or a cautious optimism towards other promising platforms? Only time will tell the true nature of this move.
Source: Cryptonews
