Fantom up 15% on rumors of Andre Cronje’s return to the market

In March 2022, well-known developer Andre Cronje, primarily known for his work on the Fantom (FTM) and Yearn Finance (YFI) projects, announced that he was leaving the crypto market.

However, rumors that Cronje is back on the market surfaced this week. It appears that the developer would be working on a Fantom-linked stablecoin called fUSD, which has also lost its parity. Currently, a fUSD is worth around $0.70.

As a result, the price of the Fantom Token (FTM) has appreciated by 17% at the time of writing. Each FTM is worth around BRL 2.35, with an estimated market value of BRL 5.9 billion (up 19%).

Reappearance on GitHub

It all started after a investigation made by journalist Colin Wu about updates on fUSD. According to the Chinese, Cronje was responsible for creating a proposal that aims to strengthen Fantom’s protection of its stablecoin.

Because of the collapse of the TerraUSD (UST) stablecoin, this market has suffered significant losses. It was no different with fUSD, which dropped close to $0.60 last week. As found by CriptoFácil, the smallest stablecoins suffered the most from mistrust.

One of the fears is, of course, the possible lack of fUSD ballast, which led the Fantom Foundation to speak out on Twitter. The organization emphasized that unlike the UST, the fUSD has real backing.

“fUSD is a super-collateralized stablecoin (similar to DAI) backed by FTM tokens that users staking. UST had nothing to back it up. Users create fUSD by borrowing against FTM wagered. If the value in FTM falls below the minimum guarantee ratio, the tokens are progressively auctioned to users who bid using FUSD (to maintain the PEG). There was no auction process,” explained the network.

Furthermore, the Foundation launched the fUSD optimization proposal, and this is where Cronje comes in. He was the author of the proposal, says Wu. At the same time, the Fantom address associated with the developer recently added nearly 100 million FTM.

That is, Cronje is not only actively contributing to the network, but has also purchased a good amount of FTM. This was interpreted as an eventual comeback, which made the price of the cryptocurrency soar in the last few hours.

At the time of Cronje’s departure, the FTM dropped about 10% in a few hours, a value lower than the rise resulting from its possible return. However, the developer has not confirmed a definitive return to the project at the time of writing this text.

Also read: OpenSea launches protocol to trade new types of tokens

Also Read: NFT Artist Beeple’s Twitter Hacked in Phishing Scam

Also Read: Exchange Releases Cryptocurrency Payment for Shopify E-Commerce

Similar Posts

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.