Multichain Bridged DAI (Fantom)Price

(DAI)

In July 2023, the Multichain protocol suffered a significant security exploit where assets were drained from its bridge wallets. This event coincided with reports that the project's leadership was detained, revealing that the protocol’s private keys were not truly decentralized. Because the underlying collateral backing these tokens was stolen, the DAI tokens on Fantom became unbacked "IOUs." The Multichain project has since collapsed, leaving these bridged assets without the necessary reserves to maintain their value.

This version of DAI lost its value because the actual DAI tokens intended to back it were stolen during the Multichain exploit. Without these reserves, the token is no longer redeemable for the underlying asset. A return to its intended value is considered highly unlikely by the community unless there is a successful legal recovery of assets or a formal bailout. Currently, the market reflects the lack of collateral, and holders should remain cautious about the prospect of recovery.

No, the Multichain bridge is permanently offline. It is currently impossible to use the original bridge to move this specific version of DAI to Ethereum or other blockchains. Users are warned to be extremely vigilant: any website or service claiming to offer a bridge for Multichain DAI is almost certainly a phishing scam designed to steal remaining funds. Always verify official channels and avoid clicking on suspicious links promising restoration of bridge services.

While you can still find liquidity for this asset on certain decentralized exchanges within the Fantom ecosystem, you will only receive the current market value, which is significantly lower than the intended peg. Many investors are faced with the choice of selling for a fraction of the original cost or holding the asset in hopes of future legal distributions. If you choose to trade, ensure you are using reputable platforms and understand that the asset's utility is severely compromised.

The Fantom Foundation has initiated legal proceedings in Singapore to have the Multichain project declared in default. The goal is to potentially liquidate remaining assets to compensate victims. However, this is a complex and lengthy legal process. Even if a liquidation occurs, there is no guarantee that the recovered funds will cover the total losses. Users should monitor official updates regarding these legal actions but manage their expectations regarding the timeline and amount of any potential refund.

The distinction lies in the smart contract address. The compromised Multichain DAI uses a specific contract address ending in 8abf3e. Since the collapse, new and secure bridge solutions have been implemented on the network to provide functional stablecoins. These newer versions use different contract addresses and are backed by different protocols. Always verify the contract address on a block explorer before interacting with any DAI tokens on Fantom to ensure you are not holding or buying the legacy, unbacked version.