The altcoin named Multichain (MULTI) listed on Binance fell sharply after the allegations about it last week.
The allegations included that the Multichain team was arrested by the Chinese police and $1.5 billion in funds were confiscated. After this news, the price of Multi fell sharply from $8 to $3.2.
Still No Voice from the Founders
In the meantime, no information has been shared about the whereabouts of the project's founding partner, Zhaojun. While the allegations on Multi have yet to be confirmed, the founder's absence for a week has raised suspicions.
Why Is The Price Rising?
While the uncertainty about the whereabouts of Multi's co-founder continued, there was an interesting rise in the price of MULTI.
The price of Multi was up about 65% yesterday. While it is not known whether the price surge in Multi was caused by insider information, experts warned it could be a short squeeze move and a trap to attract liquidity.
Reminding that there were similar moves in the LUNA collapse, experts suggested to be careful against manipulative price movements in MULTI until the accuracy of the claims and the fate of the founders are learned.
Multichain vice president of strategic partnerships wrote to the official Telegram group today, stating that if he gets any information about Zhaojun, he will share it.