Advertisement
AD

Main navigation

Fantom (FTM) in Serious Danger: Here's Main Reason

Advertisement
Fri, 26/05/2023 - 8:40
Fantom (FTM) in Serious Danger: Here's Main Reason
Cover image via www.freepik.com

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

Fantom (FTM), a high-speed scalable blockchain network, is facing a precarious situation due to its significant exposure to Multichain, its official cross-chain bridge. A substantial portion of the total value locked (TVL) on the Multichain network comes from Fantom, raising concerns regarding the potential impact of recent developments.

Advertisement

Per current data, the Multichain network has a TVL of approximately $1.76 billion, of which Fantom constitutes the greatest proportion at 36.7%. The assets on Fantom are about $1.66 billion, with nearly 40% of these assets being wrapped assets of Multichain.

The main stablecoin on Fantom is USDC, with 191 million USDC and 82 million USDT assets predominantly issued by Multichain. This points to Fantom's large exposure to Multichain and any potential issues that might arise on the latter's platform.
 

This scenario has become particularly alarming in light of the recent news surrounding Multichain. Although details are limited at the time of writing, there are reports suggesting potential legal issues involving the Multichain team. Any disruption to Multichain's operations could have severe repercussions for Fantom, given their intertwined financial relationship.

Despite the uncertainty, most chains within Multichain are operating normally for now, and there are no signs of a depeg of USDC and USDT on Fantom. Nevertheless, these rumors have already affected Fantom's market performance. The network saw an 8% price drop following the news of potential issues at Multichain.

The Fantom network finds itself in a difficult position. With such a high percentage of its assets tied to Multichain, any adverse developments could lead to serious consequences for the network. While it is too early to predict the outcomes, the situation warrants close monitoring by investors and stakeholders in the coming days.

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD