According to previous reports by Zombit, the Fantom Foundation address withdrew 450,000 MULTI tokens from the SushiSwap liquidity pool after the Multichain rumors spread.
In this regard, Andre Cronje, director of the Fantom Foundation and also a spiritual leader, explained in an interview with The Block that the reason for choosing to withdraw the pool is because it makes no sense to provide liquidity in uncertain times.
“You can see in the wallet that the assets have not been sold, and once Multichain is able to make a statement on this and clear up any concerns, we will provide liquidity again.”
Due to the close relationship between Multichain and Fantom, Multichain has also spread to the Fantom ecosystem. Data shows that 38% of the total locked asset value on the Fantom blockchain is in the Multichain protocol. In addition, the bridge tokens issued on Multichain account for 78% of the market value of Fantom ecological tokens.
Cronje said he was not particularly concerned about this, however, as the assets are protected by a multi-party computation protocol and Fantom's routing has not been affected.
"If something does happen, the impact will only be limited to USDC, DAI and wBTC issued by Multichain. Other important assets are issued locally."
This article Fantom Foundation withdraws from the pool, exacerbating panic, AC explains: MULTI has not been sold, and will re-enter the pool after Multichain clarifies. First appeared on Zombit.
