andre cronje

Fantom’s 5-week winning streak is in danger — Will FTM price lose 35%?

February 5, 2023 Coin Telegraph

As per technical data, the FTM market has turned overbought after rallying 230% in five weeks, with the coin’s momentum slowing down compared to the price boom.

The price of Fantom (FTM) risks pulling back in February due to a growing divergence between its price and momentum in recent weeks.

FTM price rallies 230% after Cronje’s 2023 roadmap

FTM’s price has grown by 230% in the past five weeks, trading at $0.61 on Feb. 5. The rally came as a part of a broader crypto market recovery but outperformed most top-ranking crypto assets due to the hype created by Andre Cronje.

Cronje is the co-founder and architect of Fantom’s layer-1 blockchain. On Dec. 26, 2022, the developer released a letter discussing the goals and priorities for the Fantom ecosystem in 2023, including his intention to allow decentralized app developers to earn 15% of the network’s revenue.

The FTM price has seen five weeks of gains in a row since Cronje’s letter to the Fantom Foundation team.

*FTM/USD weekly price chart. Source: TradingView*

The FTM/USD pair looks ready to close the week ending Feb. 5 with at least a 25% profit, helped by Cronje’s latest Twitter thread that gives 13 reasons why Fantom will be one of the best layer-1 blockchains in 2023.

Fantom price technicals hint at correction ahead

Nevertheless, FTM’s ongoing rally risks exhaustion due to a growing bearish divergence between its rising price and falling momentum.

On the daily chart, FTM/USD has formed higher highs since mid-January, while its relative strength index (RSI) has made lower highs. As a rule of technical analysis, such a discrepancy means that the upside momentum is slowing.

*FTM/USD daily price chart featuring bearish divergence. Source: TradingView*

In addition, the RSI remains above 70, suggesting FTM is “overbought.“ It also hints about short-term bullish exhaustion and possible sideways or downward price action in the coming days.

FTM risks crashing toward $0.42, or 35% from current price levels, given the level’s recent history as resistance. Moreover, a close below $0.42 would bring FTM’s 200-day exponential moving average (200-day EMA; the blue wave) at $0.38 into view as the next downside target.

*FTM/USD daily price chart. Source: TradingView*

Overall, Fantom maintains its bullish bias as long as it remains above its 200-day EMA and the 50-day EMA (the red wave).

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Fantom Founder Andre Cronje Makes ‘Announcement’ As FTM Completes 103% Rally Since New Year

January 23, 2023 The Daily Hodl

Andre Cronje says Fantom will focus on DApp ecosystem expansion in 2023

December 26, 2022 Coin Telegraph

andre cronje

Fantom has previously pledged to cut its token burn rate by 75% to incentivize DApp development.

According to a new Medium post published on Dec. 26, decentralized finance (DeFi) architect Andre Cronje reaffirmed goals and priorities for the Fantom (FTM) ecosystem in 2023. Cronje, who previously created protocols such as Yearn Finance and Keep3rV1, also revealed that he accepted a position as a board of directors member for both Fantom Foundation Ltd and Fantom Operations Ltd, which in turn oversees the namesake directed acrylic graph ecosystem.

"Our overarching objective over the next 12 months will be towards creating an environment for dapp developers to build out sustainable businesses, while differentiating ourselves from other layer 1 solutions."

Key points on Cronje's 2023 Fantom roadmap include gas monetization, which would allow revenue share for decentralized applications, or DApps, as a development incentive. In addition, Fantom DApps would be able to interact without a wallet needing to pay the gas fees itself through gas subsidies. "Users don't need to have or know about FTM [during onboarding]," Cronje wrote.

Other areas of "gas reform" include ending differentiation between smart contracts and externally owned accounts so everyone can initiate transactions and pay for gas. Tokens other than FTM would also be eligible for use as gas fees on the protocol.

In terms of new developments, Cronje plans to focus on building the Fantom Virtual Machine and a new storage mechanism. As for the protocol's financial management, Cronje wrote:

"As has been communicated publicly, we are in a very sustainable and healthy position given the current economic climate, and especially compared to 2018. This is finally one threat to our existence we do not have to be too concerned about."

Cointelegraph previously reported on Dec. 1, 2022 that Fantom announced plans to cut its token burn rate by 75% to fund its DApp reward program. DApps must have recorded 1,000,000 or more transactions and have spent three months or above on the Fantom Opera network to be eligible for rewards.

New governance proposal: dApp Gas Monetization Program

This gas monetization program will seek to reward high-quality dApps, retain talented creators, and support #Fantom’s network infrastructure.

Read the full detailshttps://t.co/GVBAWXqXBO
— Fantom Foundation (@FantomFDN) December 1, 2022

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

November 30, 2022 Coin Telegraph

Alameda Research

The Fantom Foundation's attempt to dispel concerns about potential FTX exposure has been a success thus far for FTM price.

Fantom (FTM) continued its upward momentum on Nov. 30 amid reports that the Fantom Foundation generates consistent profits and has 30 years of runway without having to sell any FTM tokens.

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

FTM price gained nearly 13.5% to reach $0.24, its highest level in three weeks. The rally came as a part of a broader rebound trend that started when it bottomed out at around $0.17 on Nov. 22. This amounts to a 50% price rebound in the last eight days.

Interestingly, the rally picked up momentum after the Fantom Foundation's "Architect," Andre Cronje, released the firm's financial records on Nov. 28, revealing that it had $340 million worth of digital assets and had been earning over $10 million annually. Notably:

Nov 2022 — Over 450,000,000 FTM, > $100,000,000 in stables, > $100,000,000 in crypto assets, $50,000,000 in non-crypto assets. Salary burn rate $7,000,000 / year. We have ~30 years left (without having to touch FTM)

Certain crypto and blockchain projects have suffered due to their potential exposure to failing companies.

For instance, the collapse of the FTX crypto exchange triggered major price declines in Solana (SOL) and its associated project tokens, such as Serum (SRM). FTX and its sister firm Alameda Research were Solana ecosystem's major supporters.

*Solana ecosystem performance in different timeframes. Source: Messari*

In February 2021, Alameda also purchased $35 million worth of FTM tokens to become a validator on the Fantom blockchain. This exposure may have been a key factor behind FTM's underperformance in the early days of November, wherein its price declined by as much as 35%.

Cronje downplayed any connection with FTX/Alameda, explaining that being a validator does not make one part of the foundation.

"Unlike most of our competitors, the foundation owns a relatively small amount of FTM," he wrote, adding:

"Most comparable L1s own between 50% — 80% of their token supply. At launch, Fantom owned less than 3%. Today, we own more than 14%. We prefer buying our tokens; we don't 'sell' our tokens for 'partnerships.'

Cronje also revealed that Fantom passed on further cooperation with Alameda in January 2022.

FTM whales and fishes accumulate

Fantom's on-chain data reveals that addresses holding more than 1 million FTM have been distributing the tokens during the FTX-led crypto market decline.

On the other hand, the supply of Fantom tokens held by addresses with a balance between 1 and 1 million FTM increased in November, suggesting strong accumulation among the network's richest (whales) and poorest (fishes) investors.

*Fantom supply distribution among addresses with a 1-infinity FTM balance. Source: Santiment*

In other words, these investors anticipate FTM to undergo a strong price recovery in the future.

Technicals support the bullish outlook to a certain degree. FTM price now eyes a nearly 20% rally toward $0.30, which coincides with the token's prevailing descending channel's upper trendline and its 50-3D exponential moving average (50-3D EMA; the red wave), as shown below.

*FTM/USD three-day price chart. Source: TradingView*

Conversely, testing $0.30 as resistance could have FTM eye a strong pullback toward the descending channel's lower trendline near $0.16, which has also served as support in July 2021, or a 30% price decline from today's levels.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

DeFi Pioneer Echoes SBF in Call for Tighter Crypto Regulations

October 27, 2022 Coin Telegraph

andre cronje

The Yearn Finance founder suggested that several cracks have shown in the crypto sector this year, and that regulation is needed to “reign in irresponsible actors.”

Respected former decentralized finance (DeFi) project founder and developer Andre Cronje has resurfaced after a lengthy hiatus to call for tighter regulations on the crypto sector amid the implosion of multiple firms this year.

The comments echo similar sentiments to that of FTX CEO Sam Bankman-Fried (SBF), who also called for more stringent digital asset industry standards last week, including greater consumer protections, transparency and disclosures.

SBF was met with strong community pushback, however, with many people accusing the CEO of trying to monopolize or censor the DeFi space, among other things.

In an Oct. 25 blog post titled “The Crypto Winter of 2022,” Cronje called for greater regulation of the sector, noting that “the recent decline of the crypto-market has shown the flaws in the system and the need for regulation to reign in irresponsible actors and protect consumers.”

Cronje added that it had been a grim year for the crypto sector as he pointed to the collapse of the Terra ecosystem and several crypto firms — particularly crypto lenders — which has left consumers reeling:

“The resultant issues which appear to be most problematic are where users’ cryptocurrencies are locked in accounts handled by exchanges, or where the management of their funds is left in the hands of others.”

He went on to call for greater consumer protections, especially concerning crypto exchanges and crypto investment service providers, as highlighted the complex case of users getting their funds back from the ongoing Celsius bankruptcy case.

“Remedies under the current regulatory regime are ineffective. Most investors sign away their rights to their crypto in voluminous terms and conditions of crypto-exchanges and many will (at best) rank as unsecured creditors should these exchange services be liquidated,” he wrote.

The former DeFi developer details current solutions used in traditional finance that the crypto sector hasn’t yet introduced, including deposit insurance, prudential supervision and consumer remedies in “being able to approach the relevant prudential authority, or at least using overarching legislation as a framework.”

Regarding deposit insurance, Cronje emphasized the importance of central banks across the globe adhering to mandatory insurance practices to ensure consumer funds are protected.

Under such practices, it generally means that people have a viable and relatively straightforward route to getting their funds back, unlike in the case of Celsius.

“The safety net of deposit insurance is a remedy available to consumers in traditional banking which is not available to depositors into crypto-exchanges (like Celsius),” he wrote.

Regarding prudential supervision, Cronje said that overarching authorities in the sector could improve confidence in cryptocurrencies, such as the case of central banks supervising private banks on factors such as “capital, asset quality, soundness of management, earnings, liquidity, and sensitivity to risk.”

Cronje is seen as one of the most influential figures in the DeFi movement, due in part to launching Yearn.finance in 2020 and his work on several other DeFi protocols. In March, however, he announced that he was stepping away from working in the industry entirely.

Fantom Rebounds 45% on Andre Cronje Comeback Speculation

May 23, 2022 The Crypto Briefing

Former DeFi Builder Andre Cronje Thinks Crypto Needs Regulation

April 18, 2022 The Crypto Briefing

Fantom Foundation issues clarification statement about departure of Andre Cronje and Anton Nell

March 11, 2022 Coin Telegraph

andre cronje

The statement comes amid ongoing speculation regarding the recent departure of two of its most prominent developers.

Recently, media outlet Rekt.news made striking accusations about Fantom Opera, a layer-1 blockchain, after the foundation’s technical adviser Andre Cronje and senior solutions architect Anton Nell announced they were leaving the crypto space entirely. Almost immediately, concerns from the community arose after Nell tweeted, “There are around ~25 apps and services that we are terminating on 03 April 2022.” In the now-deleted Rekt article, it alleged the following:

“Fantom, Solidly, SpookySwap, Abracadabra, Geist: multiple projects all entwined into a system designed to extract maximum value for a small set of insiders who are now steadily exiting the stage.”

However, on Friday, the Fantom Foundation published a statement regarding alleged “factual inaccuracies,” “debunked claims” and “misinformation” from the Rekt piece. Specifically, the Fantom Foundation stated:

“Andre and Anton did not ‘terminate’ 25 projects. Instead, any involvement (such as user interface) in these projects was to be handed over to the existing teams, many of whom had been developing and running independently.”

Moreover, the foundation explained that neither Cronje nor Nell was a core developer at Fantom and that the entity itself was not involved in creating any of the 25 projects (including, most notably, Yearn.finance) in question. It appears that in part due to the pair’s departure, the total value locked on Fantom has fallen to $8.27 billion from $11.26 billion on Sunday, the date of the announcement. The blockchain has processed over 200 million transactions with more than 2 million active wallets since its inception.

Fantom Responds to Fake News Piece, Andre Cronje Departure

March 11, 2022 The Crypto Briefing

Opinion: We Need to Stop Asking Devs to “Do Something”

March 7, 2022 The Crypto Briefing

FTM price rallies 230% after Cronje’s 2023 roadmap

Fantom price technicals hint at correction ahead

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

FTM whales and fishes accumulate

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