"Multichannel was a blow," says Andre Cronje as Fantom TVL slumps

Fantom's TVL went from over $364 million in early May to around $70 million on July 14. At its peak in 2022, Fantom's TVL exceeded $7.5 billion. .

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Fantom co-founder Andre Cronje called the Multichain debacle "a blow" to the smart contract platform, which has seen a sharp drop in business in recent weeks due to Multichain issues.

According to data from DefiLlama, Fantom's total value locked (TVL) increased from over $364 million in early May to around $70 million on July 14. At its peak in 2022, Fantom's TVL exceeded $7.5 billion. The price of its native coin Fantom (FTM) rose from $0.41 to $0.28 during the same period.

"Multichain was a blow," Cronje wrote in a Fantom forum thread, adding that he "got a lot of reassurances from the [Multichain] team about decentralization, access and distribution of geolocation of servers. Don't trust, verify (by telling me)."

Fantom total value locked . Source: DefiLlama.

Cronje's comments follow Multichain's announcement on July 14 that it was closing its operations following the arrest of its CEO in May, the only person controlling Multichain servers.

With its leadership arrested and technical challenges mounting, Multichain was mined on July 6, with over $125 million worth of cryptocurrencies withdrawn from multiple wallets, affecting the Ethereum side of the Fantom, Moonriver, and Dogechain bridges. These ...