Multichain cryptocurrency (MULTI) has already lost 50% of its value in the last 10 days, from $8 to $4, while the project is experiencing technical difficulties.
Last Thursday (25), the Binance broker even had to interrupt deposits of various cryptocurrencies linked to Multichain, which acts as a bridge between networks, asking for an explanation from the team.
However, in trying to provide clarification, requested by both Binance and Multichain users, the team revealed more problems: no one can find the CEO, Zhaojun, and only he has access to the servers.
Binance CEO Changpeng Zhao urged investors to “stay safe” as he shared the new news about Multichain. In other words, don’t use it until the problem is solved.
Multichain crisis reveals centralization problems
Citing further technical difficulties over the past two days due to “unforeseen circumstances”, the Multichain team has provided further details on what happened.
However, what is most notable is that the team claims not to have the permission or ability to fix the problem.
“This issue is beyond the team’s current permissions and capabilities.”
“Last week the same problem occurred on Router2”he continued, pointing out that the problem is now in Router5.
“The team has made every effort to keep the protocol up and running, but we are currently unable to contact CEO Zhaojun to access the server required for maintenance.”
In the past two days, the Multichain protocol has encountered multiple problems due to unforeseen circumstances. The team has made every effort to keep the protocol running, but we are currently unable to contact CEO Zhaojun and obtain the necessary server access for…
— Multichain (formerly Anyswap) (@MultichainOrg) May 31, 2023
Multichain was hacked before
Multichain, formerly called Anyswap, underwent a rebrand after a major hack. On the date, the hacker returned 80% of the stolen money, left a hateful message for the victims, and the project survived.
Converted to reais, the hack cost about $5. A value far removed from the biggest hacks in the industry, but enough to finish a small project.
Now the new Multichain releases also show the risks of centralizing a project in the cryptocurrency sector. After all, only the missing CEO can try to solve the problem.
Trading at $4 after a 50% drop, MULTI is among the top 350 cryptocurrencies in the market.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
