The price of Fantom (FTM) fell 22%, reaching $1.32 per coin after key personnel involved in the project announced they were leaving.
Fantom is in deep trouble after the departure of two high-profile employees, Anton Nelliea senior solution architect, and Andre Cronje, a prolific developer, without giving any clue as to why they left.
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The Fantom cryptocurrency has fallen sharply in value over the past week, dropping 22% to a low near $1.32 on Monday, according to data from Coinmarketcap. This brings their total asset value by about 60% from the high.
FTM price at $1.32 after touching $1.38 today | Source: FTM/USD chart on Tradingview.com
The token’s peak came on January 16, when it reached $3.3 per coin. Since then there have been many declines that eventually led to now where they are currently at just $1.32 each – a reduction of about 60%.
With the news, the price of dozens of tokens collapsed.
The price fluctuation of cryptocurrencies has been unpredictable lately, with some winning others losing. But one thing that remains constant is the importance that each individual has in regard to the value of their cryptocurrency, be it trading or holding.
Expert reviews on the news
Raj A Kapoor, the founder of India Blockchain Alliance, said “the price swing is a response to the news and reiterates how crucial an individual can be to a crypto’s value.”
It was believed that an announcement about this would be made soon as Cronje deleted his Twitter account and Linkedin reflected a change in partnership with Fantom Foundation.
Edul Patel, CEO and co-founder of Mudrex, believes Cronje’s departure could affect the DeFi space. “We will see a sell-off initially, but it should be temporary,” he said confidently.
Patel added that developers will continue to build on the space, and the exit of one person will not cause any disturbance due to their sudden change.
The analyst said investors may hit the panic button amid recent volatility.
“The markets don’t like uncertainty,” said Pratik Gauri, founder and CEO of 5ire. “Investors also realized that the valuation may be too high,” he added.
Gauri said many people don’t know the reasons behind her sudden departure, but it will affect the price.
Fantom (FTM) ecosystem
The tokens of the Fantom ecosystem followed and fell drastically. For example, SpookySwap (BOO), LiquidDriver (LQDR), Geist Finance, Tomb; these four leading chains saw their prices drop by up to 20%.
The volume of Fantom tokens has skyrocketed, more than doubling in the last 24 hours.
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Patel of Mudrex said;
Tokens would likely bounce back as DeFi is intended to be a reliable funding system. In which no one has the power to influence the system.
“Many other projects depended on Yearn and Fanton. It’s a DeFi network for all your favorite blockchains,” said Gauri, “and it has over 80 DApps there.”
The data suggests that 80% of Fantom’s total supply is available in the market, capped at 3,175 million tokens. Of these, 2,545,006,273 are currently circulating.
Raj A Kapoor advised looking for better opportunities by saying;
A big problem with Fantom is the gas price. The unpredictable volatility may pass, but in a crypto arena that is becoming overcrowded, Fantom may not be worth the wait.
Featured image from Pixabay, chart from Tradingview.com