Introduction to the Multichain Protocol and the MULTI Token
Multichain, originally launched in July 2020 under the name Anyswap, is a router protocol designed to enable cross-chain transfers of cryptocurrencies and NFTs. It supports over 74 blockchain networks, including both EVM and non-EVM networks, and aims to become the “ultimate router” for the Web3 ecosystem.Its governance token is MULTI, which was converted from the previous ANY token at a 1:1 ratio. MULTI token holders can stake their tokens through the veMULTI framework to earn bridging fee rewards and participate in voting on the protocol’s governance proposals.
The Multichain project previously received a $350,000 grant from the Binance accelerator, and Binance’s lab led a $60 million funding round featuring well-known institutions such as the Tron Foundation, Sequoia Capital, and IDG Capital.
Major Crisis and Project Termination in 2023
The Multichain project suffered a series of devastating setbacks in 2023, ultimately leading to the cessation of its operations:
- CEO Goes Missing and Is Arrested: On May 21, 2023, Multichain’s CEO, Zhaojun (Zhao Jun), was detained by Chinese police.According to a statement from the team, Zhaojun controlled all operational funds, investor funds, server access, and multi-party computation (MPC) keys; his disappearance left the team unable to perform necessary platform maintenance and technical upgrades.
- Security Breach and Fund Loss: On July 6, 2023, the Multichain protocol experienced an unauthorized large-scale withdrawal incident, resulting in the loss of over $125 million in assets, primarily affecting the Fantom bridge.Security experts and analysts widely suspect this may have been a hack; some even believe it was an inside job or a “rug pull,” especially given the context of the CEO’s disappearance.
- Cessation of Operations: On July 14, 2023, the Multichain team officially announced the cessation of operations. The team stated that, due to the inability to access project funds and the detention of the CEO and his sister—who controlled $220 million in project funds—the project could no longer continue.
These events revealed the risks associated with the Multichain protocol’s highly centralized power structure, in which critical authority is overly concentrated in the hands of individuals rather than being “decentralized” as claimed.
Current Status of the MULTI Token
Since the Multichain protocol shut down in July 2023, the MULTI token has lost its core functionality and the support of the underlying protocol. As of this writing, the MULTI token is considered a historical asset with no active functionality. Its total supply is 100 million tokens, with a circulating supply of approximately 14.54 million tokens.The token’s price and trading volume have shrunk significantly; for example, as of this writing, its price fluctuates between $0.082 and $0.096, with a market capitalization ranging from approximately $1.19 million to $1.4 million, and its 24-hour trading volume has dropped to a low of just a few thousand dollars.MULTI’s all-time high was approximately $38.62 (January 14, 2022).
For investors, the current status of the MULTI token reflects the inherent risks associated with a token from a defunct project. Relevant updates and historical data can be viewed on financial information platforms such as Svmuu.
