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While Multichain has been experiencing some issues for days, things came to a boiling point on Wednesday after rumors started spreading that its team was arrested in China. The cross-chain router protocol finally took to Twitter promising that it will compensate users affected by the disruptions.
Multichain Will Compensate Users Affected by the Delays
The cross-chain router protocol Multichain has reportedly been experiencing some delays and disruptions for several days. Matters escalated on Wednesday after a rumor that its team was arrested in China started circulating on Twitter.
In response, Multichain created its own post stating that most of its routes are functioning well, but admitting that some are indeed “unavailable due to force majeure”. The protocol also stated that “pending transactions will be credited automatically” after the issue is resolved.
Additionally, Multichain promised that it will compensate all affected users will be compensated adding that the exact plan for said compensation will be announced at a later date. The protocol also maintains that the delays are caused by a pending update.
Large Players in Crypto React to Multichain’s Delays
The problems facing Multichain are clearly reflected in the price of its native MULTI token. Over the previous 24 hours, the token dropped around 25% in price from just over $7 to around $5.30.
Several major digital assets entities have also elected to respond to the issues either by removing liquidity from MULTI or by withdrawing funds from Multichain. HashKey Group, a Chinese cryptocurrency investment firm that recently started seeking unicorn status, moved $250,000 to the cryptocurrency exchange Gate.io.
Justin Sun similarly withdrew USDD worth more than $450,000 from Multichain. Finally, The Fantom Foundation withdrew as much as $2.4 million worth of MULTI in liquidity on SushiSwap.
What is causing the delays on Multichain? Tell us what you think in the comments below.