The decision impacts users utilizing bridged tokens on networks such as BNB Smart Chain, Fantom, Ethereum and Avalanche.
Cryptocurrency exchange Binance has announced it is ending support of deposit and withdrawal services for a range of Multichain-bridged tokens, effective from July 7, 2023, until further notice.
Binance has officially stated in its blog that the tokens impacted by the decision are Polkastarter (POLS) via BNB Smart Chain, Alchemy Pay (ACH) via BNB Smart Chain, Beefy.Finance (BIFI) via Fantom Network, SuperVerse (SUPER) via BNB Smart Chain, Travala (AVA) via Ethereum Network, Spell Token (SPELL) via Avalanche C-Chain, Alpaca Finance (ALPACA) via Fantom Network and Harvest Finance (FARM) via BNB Smart Chain.
This news comes after deposits for various Multichain-bridged tokens were earlier suspended on May 25, 2023, following days of stalled transactions that sparked uncertainty surrounding the Multichain protocol.
This decision to now cease support has implications for users who utilize bridged tokens on networks such as BNB Smart Chain, Fantom, Ethereum and Avalanche blockchains.
#Binance will suspend deposits and withdrawals for a number of Multichain-bridged tokens from July 7, 00:00 UTC until further notice.
— Binance (@binance) July 5, 2023
More details here https://t.co/CL7V8UeT9l
In the blog announcement, Binance recognized the inconvenience caused and highlighted that the cease in support is a direct consequence of the ongoing challenges faced by the Multichain protocol
A representative from Binance stated that the temporary suspension of deposit and withdrawal services for the listed tokens is a risk management measure aimed at safeguarding users' funds. Trading of these tokens on Binance will not be affected and users can still withdraw them through alternative networks as users' balances will remain unaffected.
Amidst the turbulence around Multichain, certain bridges have been reported as inaccessible, while there are allegations of the protocol's co-founder and CEO, Zhao Jun, going missing and speculation of a potential police investigation.
According to Coinmarketcap, the market price of Multichain (MULTI) currently stands at $3.22, reflecting a 3.95% decrease. Based on estimates, Multichain would need to experience a 24-fold increase in value to reach $100. Assuming a consistent annual growth rate of 25%, it would take approximately 8.5 years for Multichain to reach the $100 mark.
Related: Binance Australia offices reportedly searched by local regulator
Cointelegraph has reached out to Binance for more information on this development but hasn't yet received a response at the time of publication.
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