FTM, the native token on the Fantom smart contracts blockchain, fell 30% this week after senior developers Andre Cronje and Anton Nell announced their departure from the project. The token was further compromised by a hack into a Fantom-based protocol, Fantasm, which stole $2.6 million.
FTM last traded at $1.22, its lowest level in nearly six months. It was also one of the worst performing cryptocurrencies this week, according to data from coimarketcap.com.
Cronje departure a big blow for Fantom
Cronje’s departure was a major blow to the token, given its popularity in the crypto community as the “godfather of DeFi.” While the Fantom Foundation tried to clear the air about his departure and stated that the company will continue to develop all of its major projects, the price reaction in FTM showed that sentiment was largely negative.
FTM was down 16% in the first few hours after Cronje’s announcement. Later in the week, it also failed to capitalize on a brief market rally following a crypto-positive executive order signed by US President Joe Biden.
Data from DeFi aggregator DeFi Llama shows Fantom’s total value has nearly halved since the beginning of the month and currently stands at $6.7 billion.
Fantasm Hack, Wider Crypto Market Weakness Weighs
Fantasm, a fractional algorithmic protocol based on the Fantom blockchain, said an exploit had resulted in $2.6 million worth of Ethereum being funneled from the project’s reserves. While the scope of the project is limited, exposure to the FTM blockchain had further confused traders, with FTM falling 17% after the hack was revealed.
General weakness in the crypto market also did little to support FTM. Fears of the conflict between Russia and Ukraine, rising inflation in the US and anticipation of a Federal Reserve rate hike next week kept markets subdued, despite a slight boost from Biden’s executive order.
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About the author
With over five years of experience in global financial markets, Ambar plans to leverage this knowledge for the fast-growing world of crypto and DeFi. His main interest lies in finding out how geopolitical developments could affect crypto markets and what that could mean for your bitcoin holdings. When he’s not scouring the internet for the latest news, you can watch him play video games or watch Seinfeld reruns. You can reach him at [email protected]
This post Fantom Token (FTM) Drops 30% This Week at Cronje Exit, Fantasm Hack
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