Multichain (MULTI), a Binance-listed altcoin, has been subject to heavy whale sales in the last hours. It slumped in double digits as news emerged that the team behind it had been taken into custody.
Detention of Multichain team wreaks havoc on altcoin price
A number of users on Twitter are reporting that their funds are tight after using the Multichain network for cross-chain transfers. Also, those who forward the topic to the official Multichian Telegram group will be blocked.
Multichain’s statement on May 23 included some routes being temporarily suspended due to node upgrade. The project team said that all affected processes will arrive when the upgrade is complete. Meanwhile, the news that the Multichain team has been arrested by the police worsens the situation. The news has caused 30% destruction in the MULTI price so far.
According to sources, $1.5 billion in contract funds may have fallen under the control of the Chinese government. Also, some team members seem to be carrying a large amount of MULTI tokens during these hours.
Whales got involved
Blockchain analytics firm Lookonchain reports that large whale transactions took place around the same hours. Reports indicate that around the time news of the arrests in China broke, the whales tended to be heavily sold.
According to Lookonchain’s report, “We noticed that some investors are selling MULTI. 0xb4df 3 hours ago invested 2.75 million MULTI in Gateio worth $494,200. 1 hour ago Hashkey deposited 247,000 MULTI at Gateio for $43,928. Hwg.eth is very smart and sold 36,243 MULTI ($200,000) yesterday.”
We noticed that some investors have sold $MULTI.#MultiChain
0xb4df(maybe an investor) deposited 494,200 $ MULTI($2.75M) to #Gateio 3 hrs ago.
Hashkey deposited 43,928 $ MULTI($247K) to #Gateio 1 hr ago.
hwg.eth is very smart and sold 36,243 $MULTI ($200K) yesterday. pic.twitter.com/nBsR4aWaJt
— Lookonchain (@lookonchain) May 24, 2023
Meanwhile, the report shows that the Phantom team is among the vendors. Lookonchain reported in a follow-up tweet that the Phantom Foundation Wallet had unstacked 449,740 MULTIs.
According to the report, “Note that the Phantom Foundation Wallet removed 449,740 MULTI ($2.4 million) from liquidity on Sushiswap 30 minutes ago.”
Note that Fantom Foundation Wallet has removed 449,740 $MULTI ($2.4M) from liquidity on Sushiswap 30 mins ago.
Very likely to sell off! #MultiChain https://t.co/pEcd5EmARb pic.twitter.com/M647xgOeNH
— Lookonchain (@lookonchain) May 24, 2023
cryptocoin.comWe will be updating future details on this page.
What is Multichain (MULTI)?
Multichain is a platform that acts as a bridge between various Blockchains. Multichain, formerly Anyswap, allows users to connect different Blockchains through indexed tokens or liquidity pools. The Multichain Router determines the most suitable method for the coin to be connected.
If a coin has a native token on more than one Blockchain, Multichain trades these coins in liquidity pools. However, in the absence of a native token, Multichain locks the token in a smart contract, creating an indexed token on the target blockchain.
Multichain’s own token, MULTI, will be used as a governance token in the near future. Anyswap’s former governance token ANY holders will receive their tokens at a 1-to-1 ratio.
