March 28, 2024

Andre Cronje: Fantom Foundation withdrew funds from liquidity pools

Article Reading Time:
2 minutes.

Andre Cronje: Fantom Foundation withdrew funds from liquidity pools

The director of the Fantom Foundation announced the temporary withdrawal of the fund's funds from liquidity pools on SushiSwap due to security concerns in relations with the Multichain bridge.

André Cronje stated that "if something negative does happen, it will affecton USDC, DAI, and wBTC issued on multiple chains and everything else doesn't haveof special significance."

According to the director, the situation around Multichain does not particularly bother him, because the fund's assets are protected, and the bridgeFantom is not affected.

According to data from The Block Research, about 38% of Fantom's total value locked is held on Multichain.In addition, tokens issued on Multichain account for 78% of the market capitalization of tokens on Fantom.

As noted
On May 24, the Fantom Foundation withdrew $2.4 million of liquidity of the protocol's native MULTI tokens on the SushiSwap decentralized exchange, making the tokens available for sale.

On Thursday, May 25, the Binance exchange announced
about the temporary suspension of deposits for ten networks of tokens of the Multichain bridge amid uncertainty about the future of the Multichain project.