Latest Multichain (MULTI) News Update

Deep Dive

1. Sentiment overview

Bearish sentiment dominates due to unresolved legal and security issues:
- Singapore’s High Court approved Multichain’s liquidation in May 2025 (Cryptonews), with Sonic Labs (Fantom) securing a $2.18M judgment.
- Social media reflects distrust, citing CEO Zhaojun’s sole control over admin keys and subsequent detainment in China.

However, speculative traders are capitalizing on volatility:
- MULTI surged 46% in 24h (June 2025) despite a $10M market cap, likely due to low float (14.5M circulating supply) and whale-driven pumps.

2. Key discussion themes

Security failures:
- The July 2023 hack ($210M loss) exposed centralization risks, with 96.5% of circulating supply held by whales (CoinMarketCap data).
- Developers criticize the protocol’s reliance on a single authority, undermining its “decentralized” claims.

Legal precedents:
- The liquidation sets a benchmark for holding cross-chain protocols accountable post-exploit.
- Affected users (e.g., Fantom ecosystem) now rely on KPMG-led asset recovery efforts.

3. Platform-specific insights

• Twitter/X: Speculative traders highlight MULTI’s low market cap and “dead cat bounce” potential.
• Telegram/Discord: Former users express frustration over frozen assets and lack of communication.
• Developer forums: Focus on lessons for multichain infrastructure design (e.g., ApeX Omni’s modular approach).

Conclusion

Multichain’s narrative is split between legal recklessness and opportunistic trading—its future hinges on liquidation outcomes and broader multichain sector trends.
What catalysts could revive institutional interest in cross-chain protocols post-Multichain?

Deep Dive

1. Near-term roadmap (0–6 months)

• VeMulti upgrades: The vote-escrow system (launched May 2022) could see adjustments to staking rewards or voting mechanics to attract more participants, given that whales control 96.6% of MULTI supply.
• Chain integrations: With 26 supported chains currently, Multichain may prioritize adding emerging L2s (e.g. zkSync Era) and non-EVM chains to regain its $10B TVL peak from 2022.

2. Critical context

• Leadership vacuum: The CEO’s uncontactable status since 2023 raises questions about development continuity.
• Security scrutiny: While SMPC’s distributed key system mitigates single points of failure, recent cross-chain bridge exploits industry-wide (e.g. Wormhole, Ronin) demand proactive audits.

3. Potential impact

• Successful chain expansions could reignite usage – daily volumes previously exceeded $100M but now rely on bear-market resilience.
• However, whale-dominated governance (top 10 holders control 99.9% of supply) risks centralization backlash, potentially limiting DeFi protocol integrations.

Conclusion

Multichain’s technical infrastructure positions it to capitalize on cross-chain demand, but leadership stability and decentralization progress will determine whether it can reclaim its 2022 dominance. Could VeMulti reforms balance whale influence while maintaining network security?