Binance Suspends Support for Multichain-Bridged Tokens, Citing Cross-Chain Issues
Binance, a prominent cryptocurrency exchange, has announced the suspension of support for eight Multichain-bridged (MULTI) tokens starting from July 7. The suspension is due to issues with certain cross-chain routes within the protocol. Users will be unable to deposit or withdraw digital assets such as Travala, Alchemy Pay, Harvest Finance, Polkastarter, and others across blockchain networks like Fantom (FTM), BNB Smart Chain, Ethereum (ETH), and Avalanche (AVAX), according to a July 5 update by Binance. However, Binance has clarified that deposits for these assets will still be accepted on other networks. This move follows a temporary suspension of deposits for ten Multichain-bridged tokens by Binance in May, which was attributed to issues faced by the cross-chain solution provider at the time. The announcement of the suspension has impacted the price of the Multichain (MULTI) token, which has declined by 7% to $3.10, as per CryptoSlate's data at the time of writing. This decline adds to the downward trend the token has experienced since May, with a decrease of over 60% during this period. In May, Multichain faced various challenges, including the inability to contact CEO Zhaojun amidst rumors of his arrest in China. The protocol also encountered issues with a planned cross-chain bridge upgrade, resulting in unavailable routes that were attributed to a "force majeure" event. As a result, users faced delays in their transactions, and major investors, including Justin Sun, the founder of Tron (TRX), and Fantom Foundation, reduced their exposure to the MULTI token. Multichain's Router 2 resumed operations in June after a one-month hiatus, but the protocol has not provided additional information on the functioning of other affected routes since then. The suspension of support for Multichain-bridged tokens by Binance highlights the challenges and complexities associated with cross-chain transactions. It underscores the importance of stable and reliable cross-chain solutions to ensure the smooth functioning of decentralized exchanges and the secure movement of assets across different blockchain networks. Users and investors will need to monitor developments closely as the Multichain protocol seeks to address these issues and regain confidence in its offerings.