On June 5, the MULTI token of Multichain Network experienced a significant surge of almost 30% following the confirmation from several users that the cross-chain bridge services had resumed operation. This news was shared on the official Telegram channel of Multichain Network, generating positive sentiment among investors.
CryptoSlate’s data indicates that MULTI reached a peak of $4.89 before retracing slightly to $4.39 at the time of writing, reflecting the positive market response to the resumption of services.
The announcement of the network’s revival came from Multichain’s Vice President, Tung Dinh, who tweeted, “Router 2 is back,” validating the news and adding to the growing excitement surrounding Multichain’s recovery.
Bobie, the founder of 0xScope, also contributed to the positive sentiment by sharing a screenshot confirming that various Multichain cross-chain bridge services, including Zksync Era, Kava EVM, and Avax C-Chain, had resumed their operations. In a subsequent tweet, 0xScope, the web3 knowledge graph protocol, stated that the service recovery resulted in a 47% increase in the value of the MULTI token. They further highlighted that Kava-based USD Coin (USDC) had regained its peg after experiencing a dip to as low as $0.35.
However, despite the positive developments, some users expressed concerns about the status of their pending transactions. Complaints emerged from Multichain users who had experienced delays of three days or more during the peak of the network’s issues. As of now, Multichain’s official Twitter account has not provided any updates regarding the resumed operation or the pending transactions, leaving users uncertain about the resolution of their concerns.
Multichain Network encountered challenges starting from May 23 when the team reported problems with a planned upgrade. During this time, transactions through certain routes such as Kava and Polygon were temporarily suspended, causing inconvenience to users.
Reports of stuck transactions began to surface, raising doubts about the operational efficiency and security of the protocol, leading to fear, uncertainty, and doubt (FUD) among users.
In a May 24 update, Multichain attributed its issues to a “force majeure” event, refuting claims of a security breach or hacking incident. Further complications arose when the protocol faced difficulty contacting its CEO, Zhaojun, on May 31, sparking unverified rumors of his potential arrest in China.
Amidst these crises, Binance temporarily halted deposits for tokens associated with Multichain, and several large-scale investors sold off their holdings in response to the uncertainties surrounding the network.
Overall, with the resumption of cross-chain bridge services and the subsequent surge in the MULTI token’s value, Multichain Network aims to restore trust among its users and recover from the challenges it faced during this tumultuous period.