While the broader crypto market appears to be under pressure, Fantom (FTM) has extended its losses to a steeper 20% in the past 24 hours. FTM is currently trading down 20.94% at a price of $1.33, falling to 37th by market cap.
The latest price crash for Fantom comes as its leading DeFi builder – Andre Cronje – announced his sudden exit from the crypto space. This news has shocked the Fantom community and caused a serious price crash for FTM. Andre’s business partner Anton also confirmed the news, stating that they will be discontinuing 25 and services they have built on Fantom. Anthony wrote†
Andre and I have decided that we will close the chapter on contributions to the defi/crypto space. There are approximately 25 apps and services that we will end on April 3, 2022.
On Telegram, Andre also confirmed that they will complete all transfers, meaning the affiliate project can still be run independently of Andre.
FTM and its ecosystem project take a huge hit
Most of the Fantom ecosystem projects immediately witnessed a 20-30% price crash since the news broke. As a result, the total value locked (TVL) on Fantom also fell by 21%. Solid proved to be one of the most challenging projects for Andre and Anton and the burnout could have led to their sudden departure.
There was a heavy payout from the Solidly pools yesterday, with Solidy TVL falling $44 and the Solidex TVL crashing by 45%.
According to data from DeFi Llama, the Fantom network’s TVL is down 21.16% in the past 24 hours, with Solidly down 44.61% and Solidex 45.22%. pic.twitter.com/3AkvH6RCXD
— Wu Blockchain (@WuBlockchain) March 7, 2022
While the market has reacted very negatively to Andre’s departure, the Fantom Foundation has come up with an explanation. In its latest announcement, the Fantom Foundation noted†
We are extremely grateful to Andre for everything he has done for crypto as a whole. However, Fantom is not and never was a one-man team. Fantom’s development will not be affected by Andre’s decision. Great things are coming, as planned. We are still on track to release snapsync and a db upgrade and release middleware improvements such as flat storage and the fvm in the near future.
It may take a while for the Fantom community to recover until we have someone as talented as Andre to build the Fantom ecosystem.
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About the author
Bhushan is a FinTech enthusiast and has a good flair in understanding financial markets. His interest in economics and finance draws his attention to the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his spare time, he reads thriller-fiction novels and sometimes explores his culinary skills.
This post Here’s why Fantom (FTM) fueled 20% and corrected his DeFi TVL 21% too
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