Claim Giveaway Token Proof of Reserve

Fantom Can't Make Any Stablecoin Promises If Multichain Fails

Key Takeaways
  • Multichain's closure and the detention of its CEO have caused a significant setback for Fantom, as stated by Andre Cronje, the creator of Fantom
  • The loss of Multichain is described as a severe blow to the platform
  • The Fantom Foundation has pledged to take all reasonable steps to provide compensation and is exploring collaborations with companies like Circle, Tether, TrueUSD, Binance, and others for native distribution
17-Jul-2023 By: Anushka Saxena
Fantom Can't Make An

Loss of Mutichain can be a “Severe blow”

In earlier news, Fantom creator Andre Cronje called the loss of Multichain a "severe blow" in response to a user inquiry on the forum.

We are investigating all possibilities and collaborating with pertinent organizations to recover assets, potentially utilizing Foundation funding. Up till additional information is available, no confirmation can be given.

The foundation said that it would be considered and would take all reasonable steps to provide compensation. Fantom will also keep collaborating with Circle, Tether, TrueUSD, Binance, and other companies for native distribution and consider the creation of a native bridging infrastructure.

Fantom will suggest a course of action when additional verified information becomes available. Andre Cronje said that all workers and the foundation are exposed to these assets.

When Did The Incident Start?

After Multichain formally announced a closure notice late last week as a result of its CEO Zhao Jun being detained by Chinese authorities, the situation got underway. Before this truth was concealed, the community in China had a large number of users. The platform cites the effect of legal restrictions during the probe as the justification for not telling users.

Following the disclosure, the Fantom Foundation notified stablecoin issuers to immediately freeze over $60 million USDC and over $2 million USDT on their Multichain wallets.

The loss of Multichain and the potential loss of assets for Fantom is undoubtedly a significant setback for the platform and its users. The fact that the CEO of Multichain was detained by Chinese authorities raises concerns about the circumstances surrounding the closure. It is commendable that Fantom is actively investigating the incident and collaborating with relevant organizations to recover the assets. The commitment to considering compensation and exploring collaborations with other companies shows a proactive approach to mitigate the impact on users. However, the situation highlights the risks associated with decentralized platforms and the need for robust security measures to protect user assets.

Also Read: PolyU Leads: Blockchain & Metaverse Programs Address Talent Shortage

Related News
Related Blogs