Why Fantom Fell 22% Following Key Personnel Exit
March 08 2022 - 3:34PM
NEWSBTC
Fantom (FTM) price decreased 22% by reaching $1.32 per coin after
key personnel associated with its project announced that they were
leaving. Fantom is in deep trouble following the departure of two
high-profile employees, Anton Nell, a senior solutions architect,
and Andre Cronje, a prolific developer, without providing any clues
about why they left. Related Reading | Crypto Markets Slightly
Recover After Weekend Decline The Fantom cryptocurrency has seen a
sharp decline in value over the past week, dropping 22% to hit lows
near $1.32 on Monday, according to Coinmarketcap data. This brings
their total asset value down about 60% from its peak. The
token’s peak came during January 16th, when it reached $3.3 per
coin. Since then, there have been many decreases which eventually
led up until now, where they’re currently sitting at just $1.32
each – a reduction of approximately 60%. With the news, the price
of dozens of tokens plunged. The price fluctuation of
cryptocurrencies has been unpredictable lately, with some Gain
Others Lose. But one thing that remains constant is the importance
each individual holds regarding their cryptocurrency’s value-
whether through trading or holding. Experts Reviews On The
News Raj A Kapoor, the founder of India Blockchain Alliance, said,
“the price fluctuation is a response to the news reiterates just
how critical an individual can be to a crypto’s value.” It
was assumed that an announcement regarding this would be made soon,
as Cronje deleted his Twitter account and Linkedin reflected a
change in association with Fantom Foundation. Edul Patel, CEO and
Co-founder of Mudrex, believes that Cronje’s exit might influence
DeFi space. “We’ll see sell-off initially, but it should be
temporary,” he said with confidence. Patel added developers
continue building on the space, and one person’s exit will not
cause turmoil because of their sudden change. The analyst said
Investors might press the panic button amidst recent volatility.
“The markets don’t like uncertainty,” said Pratik Gauri, founder,
and CEO of 5ire. “Also, investors realized it may be overstretched
in valuation,” he added. Gauri said many people don’t know the
reasons behind her sudden exit, but it will affect the price.
Fantom (FTM) Ecosystem The Fantom ecosystem’s tokens followed suit
and dropped down drastically. For example, SpookySwap (BOO),
LiquidDriver(LQDR ), Geist Finance, Tomb; these four prominent
chains saw their prices fall up to 20%. The volume of Fantom tokens
has skyrocketed, more than doubling over the last 24 hours. Related
Reading | Yearn Finance (YFI) Down 13% Following Andre Conje’s Exit
Patel from Mudrex said; 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. “A lot of
other projects were dependent on Yearn and Fanton. It’s a DeFi
network for all of your favorite blockchains,” said Gauri, “and it
has over 80 DApps on there.” The data suggests that 80% of Fantom’s
total supply is available in the market, with its maximum cap at
3,175,000,000 tokens. Of this, 2,545,006,273 are currently
circulating. Raj A Kapoor advised hunting for better opportunities
available by saying; 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.
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image from Pixabay, chart from Tradingview.com
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