SpiritSwap, a decentralized exchange (DEX) on Fantom, will cease operations from Sep.1, roughly 828 days after launching.
The announcement follows the Multichain hack which depleted SpiritSwap’s treasury, making it impossible for the DEX to fund essential operations like costs, salaries, and marketing.
End of an era as @Spirit_Swap calls it quits; the very first place I landed on #Fantom 828 days ago 😢👻They’re looking for a team to hand things to; otherwise operations will cease on September 1; a guide to help users withdraw $SPIRIT dregs as they unlock will be developed 🪦 pic.twitter.com/Syu2wqNlAY— The Fantom Ecologist 👻🌿 (@ftm_ecologist) August 9, 2023
The SpiritSwap team intends to find a successor by Sep. 1. If a transfer of ownership doesn’t happen, the DEX will potentially close.
SpiritSwap says it will assist the successor during the transition period.
At peaks, SpiritSwap had a total value locked (TVL) of $374 million but currently rests at $2.87 million, a decline made worse by the Multichain incident.
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Consequently, SPIRIT, the DEX’s native token, is down 42% in the last 24 hours, changing hands at $0.000725 when writing.
SpiritSwap to USD | Source: CoinMarketCap
On July 7, Multichain developers disclosed an irregular transfer that redirected assets from MPC addresses to unfamiliar destinations.
Subsequently, on July 9, Zhaojun’s sister executed a transfer of the remaining user assets within the router pool.
Due to the fallout of the hack, Multichain closed down, and more projects within the Fantom ecosystem are gradually ceasing operations.
1/2 After confirmation from Multichain that the funds will not be recovered, we are announcing that Geist will not reopen. Because Chainlink oracles are tracking the value of real USDC, USDT, WBTC or ETH, they are not aware of the real value of Multichain assets.— Geist Finance (@GeistFinance) July 14, 2023
Geist Finance, Fantom’s lending protocol, recently announced its closure because of its connection to Multichain.
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