ftm: Fantom drops 22% after key personnel exit

Synopsis

Fantom dropped about 22 per cent to hit lows of $1.32 on Monday, according to the data from Coinmarketcap.

Prices for dozens of tokens are plunging on the news.New Delhi: Cryptocurrency Fantom (FTM) has fallen 22 per cent in the last 24 after key personnel associated with its project announced departure.

Fantom has been under severe pressure following a tweet from Anton Nell, a senior solutions architect and his colleague Andre Cronje, a prolific developer, that they are leaving Fantom Foundation, without citing a reason.

Fantom dropped about 22 per cent to hit lows of $1.32 on Monday, according to the data from Coinmarketcap. The token has dropped about 60 per cent of its value from its peak of $3.3, scaled on January 16, 2022.
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Prices for dozens of tokens are plunging on the news.

Several apps, developed by the duo, will also be shutting down with their exits, said Raj A Kapoor, Founder, India Blockchain Alliance. “The price fluctuation is a response to the news reiterates just how critical an individual can be to a crypto’s value.”

Many observers assumed such an announcement was imminent, as Cronje deleted his Twitter account. After an update on Linkedin, his account reflected that his association with Fantom Foundation as an advisor has ended.

Edul Patel, CEO and Co-founder of Mudrex sees more pain coming in, but has a firm belief that Cronje’s exit does not have the ability to impact the decentralized finance (DeFi) space. “Though, we might see some sell-off initially,” he added.

According to Patel, there are several other developers building on the DeFi space. “These developers will continue building and improving the sector. One person’s exit is only causing turmoil because of the sudden change,” he said.

His exit, analysts said, some profit booking can not be ruled out as investors may press the panic button amid volatility.

Pratik Gauri, Founder and CEO, 5ire said that markets don’t like uncertainty, especially when the whole premise is based on founders. “Also, investors were realising it may be overstretched in valuation,” he added.

Gauri said since the reasons behind the sudden exit are not known, but it’ll certainly hurt the price.

The tokens of the Fantom ecosystem followed suit and dropped down drastically. Spookyswap (BOO), LiquidDriver (LQDR), Tomb (TOMB) and Geist Finance (GEIST) tumbled up to 20 per cent.

Volumes in Fantom spiked rapidly, about 200 per cent, with tokens more than $2.6 billion exchanging hands in the last 24 hours, the coinmarketcap data suggests.

“Tokens would likely bounce back, because DeFi is meant to be a trustless system of finance in which no one single person has the power to influence the system,” said Patel from Mudrex.

Gauri said a lot of other projects were dependent on Yearn and Fanton. “It’s a multi-chain layer 1 DeFi network that is highly scalable. It has over 80 DApps deployed on the network,” said Gauri.

80 per cent of Fantom total supply is available in the market as its maximum supply is capped at 3,175,000,000 tokens. Of this, 2,545,006,273 tokens are in circulation, the data suggests.

“One big problem with Fantom is gas pricing. The unpredictable volatility may pass, but in a crypto arena that’s getting crowded, Fantom may not be worth that wait, said Raj A Kapoor with an advice to hunt for better opportunities available.
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Updated: 03/07/2022 — 11:00