FTM, the native token on the Fantom sensible contracts blockchain, slumped 30% this week after senior builders Andre Cronje and Anton Nell introduced their exit from the challenge. The token was additional undermined by a hack in a Fantom-based protocol, Fantasm, that stole $2.6 million.
FTM was final buying and selling at $1.22, its lowest stage in almost six months. It was additionally among the many worst-performing cryptocurrencies this week, based on knowledge from coimarketcap.com.
Cronje departure a serious blow to Fantom
Cronje’s departure was a serious blow to the token, given his reputation within the crypto group because the “godfather of DeFi.” Whereas the Fantom Basis tried to clear the air over his departure, stating that the agency will keep it up growing all of its main initiatives, the worth response in FTM confirmed sentiment was largely unfavourable.
FTM had slumped 16% within the first few hours following Cronje’s announcement. Later within the week, it had additionally didn’t capitalize on a short market rally following a crypto-positive executive order signed by U.S. President Joe Biden.
Information from DeFi aggregator DeFi Llama reveals Fantom’s whole worth locked has almost halved because the starting of the month, at present standing at $6.7 billion.
Fantasm hack, broader crypto market weak spot weighs
Fantasm, a fractional-algorithmic protocol based mostly on the Fantom blockchain, mentioned an exploit had resulted in $2.6 million worth of Ethereum being funneled out of the challenge’s reserves. Whereas the scope of the challenge is proscribed, its publicity to the FTM blockchain had additional rattled merchants, with FTM sinking 17% after the hack was revealed.
Common weak spot within the crypto market additionally did little to assist FTM. Fears of the Russia-Ukraine battle, surging U.S. inflation and anticipation of a Federal Reserve rate of interest hike subsequent week saved markets subdued, regardless of a slight increase from Biden’s government order.
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