Multichain Network Out of Control: An In-depth Analysis

The Multichain network, a prominent player in the blockchain industry, has recently faced an unexpected issue.

Multichain Network Out of Control: An In-depth Analysis

The network appears to have lost complete control, a situation that differs significantly from a typical hacker attack. The asset transfers are taking an unusually long time, and the receiving addresses are clean, indicating that the network’s control loss is not due to an external attack.

The Unusual Nature of the Incident

Upon closer inspection, it becomes clear that this is not a typical hacker attack. The transactions’ characteristics are entirely normal, and the asset transfer process is prolonged. Each asset from the Multinet Bridge is moved to an independent wallet, this referances to a staggering 130 million $ worths of assets with no further actions taken, such as moving to an exchange, swapping, or mixing coins. The receiving wallet remains completely clean, devoid of even gas.

Implications of the Network’s Loss of Control

The implications of the Multichain network’s loss of control are far-reaching. The assets controlled by Multichain’s multi-signature are entirely out of control. If the owner of the retained portion of the shard holding MPC or other multisig shards exceeds the threshold, all of these assets and contracts can go unchecked. This situation has led to significant criticism from users, especially since the network had recently recovered from a crash.

Fantom Foundation’s Response

In response to the situation, the Fantom Foundation, which has a close relationship with Multichain, has sought to distance itself from the issue. The foundation claims that FTM was never released or managed by Multichain, so FTM over wFTM, FTM ERC-20, and Opera will not be affected. However, the Multichain project only advises users to stop working on the platform and revoke all contracts related to the approval chain.

The Impact on the MULTI Token

The ongoing issues with the Multichain network have had a significant impact on the MULTI token. The token’s price has continued to fall, with a 16% drop in the past 24 hours, currently trading at $2.61. The project has yet to shed light on the issue or offer a plan for reactivation, leaving investors and users in a state of uncertainty.

About Multichain

Multichain is a platform that allows users to establish private blockchains that can be used by organizations for financial transactions. It provides a simple API and a command-line interface, making it easy to deploy and operate. However, the recent loss of control over the network has raised concerns about its stability and reliability.