Leading cryptocurrency exchange Binance seems to be courting controversy yet again after it announced that it was suspending support for withdrawing and depositing many cross-chain tokens that are linked to the Multichain project.
The suspension will be effective from July 7 and would impact a wide array of crypto tokens that are minted on Multichain across various networks. The tokens that are powered by the BNB Smart Chain and will be affected by the suspension include many new crypto coins like Harvest Finance (FARM), Alchemy Pay (ACH), Beefy.Finance (BIFI) and Polkastarter (POLS).
The list of tokens whose prospects will be hampered by Binance’s new move includes Alpaca Finance (ALPACA) and Travala (AVA) — which is minted on an Ethereum bridge.
While Binance is yet to point out a reason behind its decision, it is largely being seen as a follow-up of its earlier action against Multichain. In May 2023, Binance temporarily paused support to deposits in some tokens that were transferred via Multichain due to certain complications with the latter’s protocol.
Despite its move to suspend support for some tokens, the coin tracker has assured its users that they can still withdraw or deposit the affected tokens via other exchanges supported by it. In other words, as long as users continue to deposit or withdraw the affected tokens from networks other than the Multichain project, Binance would support the transactions.
At present, the Multichain Bridge has assets worth $1.3 billion under its management that have been minted via its cross-chain platform.
Binance has been hitting the headlines due to the regulatory action that it has been facing at the hands of the US Securities and Exchange Commission. The regulatory body had in June sued Binance for allegedly inflating trading volumes and diverting customer funds, among other charges.
Earlier in May, the Multichain project had reported technical issues which led to a significant number of transactions being stuck. During the crisis, some of the pathways of the cross-chain bridge including Polygon zkEVM, zkSync, and Kava were unoperational.
At first, the Multichain team cited technical glitches as the reason. However, it later clarified that the non-operation of the bridge routes was due to certain reasons which were categorized as “force majeure”.
Over the years, Binance has evolved as a cutting-edge exchange platform where one can find a range of insights like what is the best time of day to buy cryptocurrency and how to make $100 a day with cryptocurrency.
Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
