SpiritSwap, a decentralized exchange (DEX) operating on the Fantom smart contract platform, has announced its decision to halt operations from September 1. The move comes as a result of complications stemming from the Chinese cross-chain protocol Multichain. A recent hack across multiple chains severely impacted SpiritSwap's financial resources, leaving the DEX unable to cover essential operational expenses like salaries, marketing, and operational costs. The team is actively seeking a new team to take over the DEX before September 1. If a transition of ownership does not occur By then, the DEX will cease its operations entirely.
Originally established in 2021, SpiritSwap was once a prominent DEX on the Fantom platform. Its total value locked (TVL) reached an all-time high of $374 million in January 2022. However, this figure has significantly declined due to the effects of the multi -chain incident, with the current TVL standing at $2.92 million at the time of the announcement.
Multichain, the cross-chain protocol that Fantom had chosen to use, has faced its own set of challenges. Following the arrest of Multichain's co-founder and CEO, Zhanojung He, in May by Chinese authorities on undisclosed charges, funds and assets belonging to Multichain and its users were shifted to stablecoins and private coins, then moved out of the protocol. This situation led to a decrease in Fantom's TVL from $364 million in early May to $72 million. The security concerns associated with Multichain also prompted the closure of Geist Finance, a lending platform on the Fantom network.
