It is rumored that the Multichain team was arrested, and FUD sentiment is spreading. What different information does the data on the chain reveal?

Perhaps the worst is yet to come, but on-chain data does not suggest significant outflows.

**Written by: **Ignas | DeFi Research

compile: wesely

At present, Multichain's cross-chain transaction volume is about 129 million US dollars, second only to Stargate, but if we look at the long-term view, the bridge funds do not seem to show obvious signs of panic.

According to apes_prologue report, Fantom is the L1 most vulnerable to Multichain's wrapped token.

• 35% of Fantom's total TVL is locked in it.
• 40% of Fantom assets (excluding its native $FTM token) are issued by Multichain ($650M)
• Multichain issued 81% of the total market capitalization of stablecoins in the Fantom ecosystem

It stands to reason that we should see a large number of Fantom withdrawals on the chain, in fact, the withdrawal amount is only 18 million US dollars more than the deposit, accounting for only 1% of Fantom's total TVL $1.78B USD, so there does not seem to be too much panic .

Due to its reliance on Multichain, Fantom should have experienced a large outflow of TVL, with a TVL drop of 9.55% in US dollars, but after deducting the impact of FTM prices, the data shows that there is no obvious capital outflow.

The most obvious sign of panic is the Multichain LP on the Fantom chain. In total, the relevant LPs withdrew $33 million from the Fantom chain while only depositing $1.7 million.

Multichain reported that "due to force majeure, some cross-chain routes are unavailable", Kava, zkSync and Polygon zkEVM routes are temporarily suspended, and 83 transactions have been pending for more than a day.

Perhaps the worst is yet to come, but on-chain data shows that there has not been a massive outflow of funds. However, what is worrying is that the team has been lacking in effective communication. It is reported that the current Multichain CEO Zhaojun has not been online for a week.