The rumored arrest of the Multichain team has caused fear, uncertainty, and doubt in the Fantom ecosystem, leading to a 5x increase in daily bridging volumes despite trading volumes of $129 million. However, on-chain data shows that the bridging volumes do not indicate panic.
Fantom is particularly vulnerable to any negative impact resulting from the rumored arrest of the Multichain team because it is the most exposed to Multichain's wrapped tokens, with 35% of its TVL dependent on these wrappers.
While there has been a lack of communication from the Multichain team, the market has not shown much panic, with only a 1% withdrawal of TVL from Fantom and no significant outflow of capital.
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