Hey everyone, in this article we will discuss about the recent event touching the the Fantom Network. As some of you may know yesterday the price of the Fantom token fell by nearly 10%.

That’s why we will try to explain why today.

What is Fantom

In short, Fantom is a layer 1 blockchain that use a specialized ****Proof of Stake ( POS ) model which is called the “Lachesis Protocol” .It allows for exemple the integration of DEFI, as you may know in the DEFI world there are a lot of “ bridge “ it links the different blockchain. It allows for exemple to switch between ETH token and FTM.

What is Multichain

Some infrastructure are specialized in the cross-chain interactions like Mulitichain :

Multichain links more than 50 blockhains together, it shows how important it is.

The situation

Well what happen when a bridge stop working ? That’s the tricky situation that took place in May 24. Some users declared not to have received their tokens. Of course a lot of people were panicking so when a wallet from the Fantom foundation withdraw according to Etherscan 2,4 millions dollars of ETH and Multi token which is the token of Multichain that was on SushiSwap.

In addition there were rumor that the Multichain team was arrested by Chinese authorities with 1.5 billion dollars on a contract. So that’s why the Multi token fell by 30%.

But why is it such a big deal for Fantom, well as you can see here :

That’s approximately 650 million dollars ( a lot ! ) 

Conclusion :

Now you know what happen to Fantom on May 14. We will see how it will evolve in the futur.

Until then, stay safe !

Source thumbnail : astaga.com

As always, thank you for reading !

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