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 undertaking. 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 practically six months. It was additionally among the many worst-performing cryptocurrencies this week, in response to knowledge from coimarketcap.com.
Cronje departure a significant blow to Fantom
Cronje’s departure was a significant blow to the token, given his reputation within the crypto neighborhood because the “godfather of DeFi.” Whereas the Fantom Basis tried to clear the air over his departure, stating that the agency will stick with it creating all of its main tasks, the value response in FTM confirmed sentiment was largely unfavorable.
FTM had slumped 16% within the first few hours following Cronje’s announcement. Later within the week, it had additionally did not 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 practically halved because the starting of the month, presently 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 undertaking’s reserves. Whereas the scope of the undertaking is proscribed, its publicity to the FTM blockchain had additional rattled merchants, with FTM sinking 17% after the hack was revealed.
Basic weak spot within the crypto market additionally did little to help 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 enhance from Biden’s government order.
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The introduced content material could embody the private opinion of the creator and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The creator or the publication doesn’t maintain any accountability to your private monetary loss.
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