Worries about the stability of Multichain and its total value locked (TVL) of $1.5 billion, sparked a major sell-off of the project’s token, MULTI, yesterday.
The panic was triggered by a tweet claiming that users were reporting delays in receiving assets across the bridge and that an insider was dumping tokens.
A transfer of almost 500,000 MULTI (worth approximately $3.2 million at the time) was made from an address suspected to be either a Multichain team member or an investor. The tokens, which hadn’t been touched since they were first received over a year ago, were sent to the centralized exchange Gate.io, where users inferred they would be sold off.
The tweet was then reported by a Chinese-language account, which…