Fantom price is moving against the general market sentiment, while major cryptocurrencies are trending lower, FTM is reclaiming lost territory. The token is trending higher due to speculation about its founder Andre Cronje.
— iamdefinitelyandre.ftm (@AndreCronjeTech) November 3, 2022
At the time of writing, Fantom price is trading at $0.2 with a profit of 17% in 24 hours and a profit of 20% in the previous seven days. In the meantime, Bitcoin and Ethereum are posting losses and are at risk of getting back into their range after seeing the bullish momentum wane.
Fantom Price is back, Andre Cronje too?
According to a report of Wu Blockchain, popular and controversial developer Andre Cronje has changed his LinkedIn bio to “Memes at Fantom Foundation”. This change led to rumors of his potential return as a key member of the project.
Cronje is the so-called “DeFi godfather”; it is behind some of the biggest protocols in the industry, including Yearn Finance (YFI), Keep3r Network (KP3R), Fantom and others. Earlier this year, Andre Cronje and other decentralized finance (DeFi) developers announced their departure from crypto.
The developer cited a need for maturation in the industry and regulatory uncertainty. Cronje’s departure hurt the Fantom Prize and the valuation of projects associated with his name.
Over the past few months, Cronje has hinted at returning to the Fantom Foundation. On May 23, the developer presented a proposal to improve fUSD, Fantom’s native stablecoin.
Around this time, the collapse of Terra wreaked havoc on the industry and hurt stablecoins. The Fantom Foundation released the following statement:
fUSD is not UST
• fUSD is an over-collateralized stablecoin (similar to DAI) backed by staked FTM. UST had nothing to back it up.
• Users create fUSD by borrowing against their staked FTM.
— Fantom Foundation (@FantomFDN) May 18, 2022
Following Cronje’s proposal, Fantom price saw a significant appreciation of over 45% in a single trading session. However, the rally was short-lived as the developer remained on the sidelines.
Will history repeat itself?
FTM’s current bullish price momentum is more conservative than on past occasions when there was speculation of Cronje’s return. Nevertheless, its influence on the DeFi space remains strong, as evidenced by the price action of the token.
In the next few days, if the rumors go unconfirmed, Fantom could run out of gas, leading to another massive crash into previous support levels. In this sense, traders should watch for sudden spikes in volatility.
Hmm, I wonder what will happen to all this long open interest on $FTM who chased the pump…
Staircase, elevator… pic.twitter.com/ZsPOSKYRzM
—Clark (@CanteringClark) November 3, 2022