FTM price rebounds 50% as Fantom reveals 30 years runway (without having to sell its token)

1 year ago

Fantom (FTM) continued its upward momentum connected Nov. 30 amid reports that the Fantom Foundation generates accordant profits and has 30 years of runway without having to merchantability immoderate FTM tokens.

Fantom's FTM holdings up from 3% to 14%

FTM terms gained astir 13.5% to scope $0.24, its highest level successful 3 weeks. The rally came arsenic a portion of a broader rebound inclination that started erstwhile it bottomed retired astatine astir $0.17 on Nov. 22. This amounts to a 50% terms rebound successful the past 8 days.

Interestingly, the rally picked up momentum aft the Fantom Foundation's "Architect," Andre Cronje, released the firm's fiscal records connected Nov. 28, revealing that it had $340 cardinal worthy of integer assets and had been earning implicit $10 cardinal annually. Notably:

Nov 2022 — Over 450,000,000 FTM, > $100,000,000 successful stables, > $100,000,000 successful crypto assets, $50,000,000 successful non-crypto assets. Salary pain complaint $7,000,000 / year. We person ~30 years near (without having to interaction FTM)

Certain crypto and blockchain projects person suffered owed to their imaginable vulnerability to failing companies.

For instance, the collapse of the FTX crypto exchange triggered large terms declines successful Solana (SOL) and its associated task tokens, specified arsenic Serum (SRM). FTX and its sister steadfast Alameda Research were Solana ecosystem's major supporters.

In February 2021, Alameda besides purchased $35 cardinal worthy of FTM tokens to go a validator connected the Fantom blockchain. This vulnerability whitethorn person been a cardinal origin down FTM's underperformance successful the aboriginal days of November, wherein its terms declined by arsenic overmuch arsenic 35%.

Cronje downplayed immoderate transportation with FTX/Alameda, explaining that being a validator does not marque 1 portion of the foundation.

"Unlike astir of our competitors, the instauration owns a comparatively tiny magnitude of FTM," helium wrote, adding:

"Most comparable L1s ain betwixt 50% — 80% of their token supply. At launch, Fantom owned little than 3%. Today, we ain much than 14%. We similar buying our tokens; we don't 'sell' our tokens for 'partnerships.'

Cronje besides revealed that Fantom passed connected further practice with Alameda successful January 2022.

FTM whales and fishes accumulate

Fantom's on-chain information reveals that addresses holding much than 1 cardinal FTM person been distributing the tokens during the FTX-led crypto marketplace decline.

On the different hand, the proviso of Fantom tokens held by addresses with a equilibrium betwixt 1 and 1 cardinal FTM accrued successful November, suggesting beardown accumulation among the network's richest (whales) and poorest (fishes) investors.

In different words, these investors expect FTM to acquisition a beardown terms betterment successful the future.

Technicals enactment the bullish outlook to a definite degree. FTM terms present eyes a astir 20% rally toward $0.30, which coincides with the token's prevailing descending channel's precocious trendline and its 50-3D exponential moving mean (50-3D EMA; the reddish wave), arsenic shown below.

Conversely, investigating $0.30 arsenic absorption could person FTM oculus a beardown pullback toward the descending channel's little trendline adjacent $0.16, which has besides served arsenic enactment successful July 2021, oregon a 30% terms diminution from today's levels.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.

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