Multichain’s hack has disrupted the Fantom ecosystem, prompting Binance to suspend deposits and withdrawals. Analysts are questioning the future of Fantom Foundation and its native token, FTM.
Analyst Worries About Fantom Blockchain’s Future Amid Multichain Hack Fallout
Crypto analyst Miles Deutscher expresses concern over the future of the Fantom blockchain ($FTM) due to a severe devaluation of its assets following the recent Multichain hack. The outflow of funds, amounting to $125 million, from the cross-chain router protocol Multichain significantly impacted the depreciation of crypto assets, particularly on the Fantom blockchain.
After the Multichain hack, Fantom TVL is now at its lowest since May 2021.
Can $FTM ever make a recovery? Or is it simply another dead chain?
I just recorded a video discussing everything to do with Fantom, its future, and what I'm doing.
Watch now 👉: https://t.co/UuNTzjjALK pic.twitter.com/wDP3TN5TAn
— Miles Deutscher (@milesdeutscher) July 22, 2023
Multichain Disturbances Impact Fantom Network, Fuel Arbitrage Opportunities
Recent disruptions within Multichain have significantly impacted the Fantom network, causing disruptions in regular trading values. This situation has created favorable conditions for arbitrage trading, offering traders the chance to profit from price discrepancies of the same asset in different markets.
One notable example is the USD Coin (USDC), a cryptocurrency pegged to the US dollar’s value. In the aftermath of the Multichain complications, the value of USDC on Fantom experienced a significant drop, plummeting to as low as $0.50—a substantial deviation from its usual dollar-pegged price.
Wu Blockchain, a Twitter news outlet, reported that an anonymous trader capitalized on the price discrepancy, purchasing USDC at a 50% discount using Fantom’s native tokens, thus driving the price back up to $0.90. Binance CEO Changpeng Zhao (CZ) reassured users that their funds are secure despite the disturbances.
Looks like another hack happened on Multichain. This DOES NOT affect users on @Binance or @Binance itself. We have swapped all assets out and closed deposits a while back. Regardless, we offer our assistance in helping with the situation.
Stay #SAFU. https://t.co/GGInbxFkic
— CZ 🔶 BNB (@cz_binance) July 7, 2023
Following the incident, Binance, a prominent cryptocurrency exchange, suspended deposits and withdrawals for several tokens bridged by Multichain, effective July 7, 2023. The affected tokens include Polkastarter, Alchemy Pay, SuperVerse, Harvest Finance, Beefy Finance, Alpaca Finance, Travala.com, and Spell Token. These tokens are bridged on different networks, including BNB Smart Chain, Fantom, Ethereum, and Avalanche.
The recent hack has placed the Fantom blockchain at a critical crossroads, raising doubts about its future viability, with Deutscher questioning if it’s another “dead chain.” The recovery and restoration of user trust will ultimately determine the fate of Fantom. Only time will tell if it can overcome the current crisis and regain its users’ confidence.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
Join Cryptos Headlines Community
Follow Cryptos Headlines on Google News and Threads App
