For five days, Multichain bridge users have not been able to withdraw or transfer their funds. Despite the many complaints, the platform did not provide a clear explanation for its technical problems.
In light of radio silence from the Multichain team, Binance has decided to suspend payments for certain trading pairs.
The pairs in question are: POLS-BSC, ACH-BSC, BIFI-FTM, SUPER-BSC, AVA-ETH, SPELL-AVAXC, ALPACA-FTM, FTM-ETH, FARM-BSC and DEXE-BSC.
Multichain keeps quiet
So far, the Multichain team has only given very vague explanations for the technical issues with their platform. On social networks, some pages are talking about a case of force majeure and an arrest of the leaders of the platform.
In response to user complaints, DJ Qianthe co-founder of Multichain, simply tweeted: “the team is not available yet”.
Emeka Achodor, one of the bridge users, claimed that his funds have been blocked for five days. Similarly, other users are complaining about technical issues and a sharp drop in the liquidity of 🪙 ETH on Multichain pools.
As a reminder, Multichain is a crypto bridge that allows its users to exchange crypto assets in liquidity pools and transfer them from one blockchain to another.
Bridge users can exchange tokens on 70 different blockchains, including Fantom, Kava and ⛓️ Harmony. However, for users to transfer multi-chain tokens, such as 💲USDC, there must be sufficient liquidity on both the sending network and the receiving network.
According to Neu13, user funds are still locked in the platform’s smart contracts, which means the team doesn’t plan to pull the rug.
Will China trigger the next bull market?
Last year, Multichain lost $1.4 million due to an error in one of its smart contracts. Cross-chain bridges, which ensure interoperability between different blockchains, are particularly vulnerable to attacks.
In 2020, Binance have invested $350,000 in Multichain through its crypto startup incubation program.
Also, 👨🏻 Changpeng Zhao tweeted the Chinese public television yesterday broadcast a show on cryptocurrencies. This despite the ban on crypto trading and mining by the Chinese government.
According to CZ, issues like this can help spark a bullish rally in the crypto market. Similarly, Gemini co-founder Cameron Winklevoss recently predicted that “Asia will trigger the next bull market”.
Moral of the story: clearly the disadvantages of crypto bridges outweigh their advantages.
Disclaimer: In accordance with the Trust Project guidelines, BeInCrypto is committed to providing unbiased and transparent information. This article aims to provide accurate and relevant information. However, we encourage readers to check the facts on their own and seek professional advice before making any decision based on this content.