Multichain

The history of Multichain (MULTI) began in July 2020 when it was founded by Zhaojun Zhaojun. Initially, it was known as Anyswap and was designed to be a cross-chain decentralized exchange (DEX). However, in early 2021, Anyswap eliminated its DEX function and focused solely on cross-chain bridge services, aiming to enable seamless interactions between various blockchains. This shift in focus led to the rebranding of Anyswap to Multichain.

Multichain raised $60 million in funding at a $1.2 billion valuation in a financing round led by Binance Labs, with participation from several prominent investors. This funding was primarily used to develop the staff and ecosystem, furthering the goal of routing the Web3.

Today, Multichain is an open-source, cross-chain router protocol that enables the transfer of fungible and non-fungible tokens across 63 different blockchains, including EVM-compatible chains and parachains. Its native currency, MULTI, serves as a governance token, allowing holders to participate in the administration of the Multichain ecosystem.

Multichain (MULTI) is a decentralized blockchain-based cross-chain ecosystem that facilitates cross-chain token swaps and decentralized trading. Here's how it works:

1. Multichain Router: This is the primary product offered by Multichain. It allows users to swap tokens between any two supported chains freely and affordably. Developers can leverage the best aspects of each network in their creations using the Multichain Router.

2. Liquidity Pools: These pools provide programmed pricing and liquidity. Anyone can access public funding by adding liquidity into swap pairs. This feature is particularly useful for startups to secure access to global investment capital without gatekeepers.

3. Multiswap Exchange: Users can enjoy non-custodial trading activities using the Multiswap exchange. This protocol protects user privacy by never requesting sensitive information. Instead, users just need to link their compatible wallet, such as MetaMask.

The MULTI token is the main utility and governance token for the Multichain system. Token holders can secure passive returns by staking their tokens on Fusion. The token is available on multiple chains, including Ethereum, Binance Smart Chain, and Fusion. Traders who hold ANY (the previous governance token) also gain access to the distributed governance system, with more voting power granted to those holding more MULTI tokens.

Multichain supports over 74 blockchain networks, including EVM-compatible and non-EVM chains. It uses smart contracts to lock tokens on one blockchain and mint wrapped tokens on another blockchain. This process ensures seamless asset transfer across different blockchains.

Multichain's security is enhanced by its decentralized architecture. The Multichain MPC network 2.0 consists of open nodes run by the community and partners, ensuring strengthened performance and further decentralization. This avoids single points of failure, ensuring the security and integrity of the system.

Multichain was founded in July 2020 under the name Anyswap. It has since rebranded and secured significant funding from industry leaders and VC firms, including Binance Labs. The project has integrated with various networks, such as the Shiden Network, and continues to expand its user base and partnerships.

The Multichain wallet is non-custodial, allowing users to control, protect, and monitor their digital assets without being separated from their crypto. The wallet is free to download and use, making it accessible to a wide range of users.

Overall, Multichain (MULTI) provides a comprehensive ecosystem for cross-chain interoperability, decentralized trading, and liquidity management, making it a significant player in the cryptocurrency market.

The token Multichain (MULTI) has several strengths that contribute to its success and adoption:

1. Governance: MULTI serves as a governance token, allowing holders to participate in the administration of the Multichain ecosystem by casting votes and proposing changes. This decentralized governance model ensures that decision-making is distributed and community-driven.

2. Interoperability: Multichain supports over 1,100 coins and allows users to connect more than 1600 tokens across 63 different blockchains, including EVM-compatible chains and parachains. This broad compatibility enables seamless asset transfers and interactions between diverse ecosystems.

3. Security: Multichain employs Threshold Signature Schemes (TSS), splitting private keys into multiple shards held by independent nodes. This decentralized approach enhances security by reducing the risk of a single point of failure.

4. Scalability: By spreading token transactions across multiple blockchains, Multichain increases the network's capacity for processing transactions, reducing the risk of congestion and slowdowns common in single-chain systems.

5. Flexibility: Users can choose networks with lower fees for their specific use cases, potentially reducing the overall cost of transactions. This flexibility is particularly beneficial for applications requiring high transaction volumes.

6. Decentralization: Multichain is an open-source platform, ensuring that its operations are controlled by code rather than a central authority. This decentralized nature aligns with the principles of blockchain technology.

7. Ease of Use: Multichain offers simple integration processes and fast deployment, making it easier for projects to launch cross-chain tokens and for users to access a broader range of functionalities and applications.

These strengths collectively position Multichain as a robust and versatile solution for cross-chain interactions, enhancing the overall user experience and fostering a more interconnected blockchain ecosystem.

Multichain (MULTI) is a decentralized blockchain-based cross-chain ecosystem that facilitates token swaps and decentralized trading across various blockchains. Despite its innovative features, the project is not immune to financial risks. Here are some of the key financial risks associated with Multichain:

1. Risk of Losing Money Rapidly: Trading in cryptocurrencies like Multichain involves high risks due to the decentralized and non-regulated nature of the markets. This risk is exacerbated by the use of leverage, which can result in rapid losses.

2. Legal Risks: In the event of user asset losses, it can be complex to determine the legal responsibilities of cross-chain project parties. This ambiguity can lead to legal disputes and financial repercussions.

3. Exploits and Hacks: Multichain has faced significant exploits in the past, such as the July 2023 hack where over $125 million worth of cryptocurrency was withdrawn. This highlights the vulnerability of the system to security breaches, which can result in substantial financial losses.

4. Market Volatility: Cryptocurrencies are known for their price volatility, and Multichain is no exception. Market fluctuations can lead to significant losses for investors if they are not prepared for such changes.

5. Regulatory Risks: The regulatory environment for cryptocurrencies is constantly evolving, and changes in regulations can impact the value and viability of Multichain. This uncertainty can lead to financial risks for investors.

6. Technical Risks: The technical complexity of maintaining a multi-chain application can be immense, and any technical failures or updates can impact the financial performance of Multichain.

These financial risks underscore the importance of thorough research and risk assessment before investing in Multichain or any other cryptocurrency.

• Team Members:
  • CEO Zhaojun: Detained by Chinese authorities, his devices and recovery phrases were confiscated, and his sister was also taken into custody.
  • Zhaojun's Sister: Played a crucial role in transferring user assets in the router pool before being detained, leaving the status of the preserved assets uncertain.
  • Developers: An international group primarily composed of Chinese experts who rebranded Anyswap as Multichain in March 2022 and later launched a new project called ValueRouter after the security debacle.