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The price of MULTI, the native token of the cross-chain protocol Multichain has experienced a significant rally, surging over 36% in the last 24 hours on Coinmarketcap. This surge comes despite the protocol’s ongoing partial offline status and the lack of a clear explanation from the project’s team.
Transaction issues had previously been reported, which led to rumors that the Multichain team may have been detained in China. Wild rumors have surfaced in response to concerns about the platform’s security and the whereabouts of its team, heightening the sense of urgency among market participants.
Why is Multichain (MULTI) token rallying?
The MULTI token rapidly declined, falling from $8 to as low as $3.30 in a few days. However, the token’s price has recently recovered, rising to a high of $5.2 before leveling off at its current price of $4.70.
The reason behind this sudden price rise remains uncertain, as Multichain has not provided any updates regarding the team’s whereabouts. Meanwhile, the Multichain community is actively looking for clarification and questioning the real meaning of the “force majeure” tweet the team used to justify the protocol’s partial offline status.
what does a force majeure mean here
— foobar (@0xfoobar) May 24, 2023
Some community admins, however, did mention in the official Multichain Telegram group that they would share the news whenever available, but no concrete information has been shared as of yet.
Interestingly, Multichain’s token surge coincided with a positive market trend, where most leading cryptocurrencies experienced gains. Bitcoin (BTC), for instance, reached a three-week high following news of the U.S. government’s agreement on the debt ceiling. Ethereum (ETH), the second-largest cryptocurrency by market cap, also saw a 3.05% surge over the past 24 hours.
Additionally, other cryptocurrencies such as Injective (INJ), Pancakeswap (CAKE), Mask Network (MASK), and Sui (SUI) recorded gains of 13.16%, 13.07%, 8.42%, and 6.18%, respectively, currently leading the market as top gainers on Coinmarketcap.
Users should remain cautious
Key players in the crypto ecosystem are taking precautions to protect their interests in the face of growing concerns about Multichain’s state and its role as a significant site for asset transfers between different blockchains.
Binance, the world’s largest crypto exchange, even issued a tweet urging traders to exercise caution when trading Multichain’s token due to the ongoing uncertainties surrounding the project. They advised users to stay informed and exercise vigilance when engaging with any assets associated with Multichain.
Given the current lack of clarity and the speculative nature of the situation, it is crucial for investors and users to exercise caution before making any decisions related to Multichain or its token. It is advisable to wait for official updates from the project’s team and to consider the potential risks involved.