Fantom’s TVL Drops Significantly Amidst Multichain Issues
– Fantom’s total value locked (TVL) has plummeted from over $364 million in early May to around $70 million on July 14.
– The price of Fantom’s native coin, FTM, has also experienced a decline, dropping from $0.41 to $0.28 over the same period.
– Multichain, a key player in Fantom’s ecosystem, announced its shutdown following the arrest of its CEO in May, causing a ripple effect on Fantom.
– Multichain’s technical challenges resulted in an exploit on July 6, leading to the withdrawal of over $125 million worth of cryptocurrencies from multiple wallets.
– Geist Finance, a lending protocol on Fantom, was forced to permanently shut down due to losses from the exploit, impacting Fantom’s TVL.
– Circle and Tether have frozen over $65 million in assets tied to the attack, and Fantom is working to recover the assets.
Fantom’s TVL has taken a major hit due to the issues surrounding Multichain, resulting in a significant decline in activity within the ecosystem. The exploit and subsequent shutdown of Geist Finance have further exacerbated the situation. However, Fantom is actively working to recover the assets and explore new options for native issuance and bridge infrastructure. It remains to be seen how Fantom will bounce back from this setback and regain its previous levels of TVL. Stay tuned to see if they can turn the tide!