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Why Cryptocurrency Fantom Is Crashing on Sunday

Why Cryptocurrency Fantom Is Crashing on Sunday
Written by Publishing Team

What happened

Cryptocurrency Fantom ( FT -6.44% ) is down 16% as of 1:25 pm ET Sunday following a tweet from Anton Nell that he and Andre Cronje are leaving the decentralized finance (crypto) industry. Cronje is a prolific coder who has done extensive work on Fantom, and Nell is — or was — the senior solutions architect for the Fantom Foundation. Several of the apps the pair of developers helped operate will also be shutting down.

So what

There’s no ill-will or internal conflict driving the decision, for the record. Nell’s tweet explains “this is not a knee jerk reaction to the hate received from releasing a project, but a decision that has been coming for a while now.” In scale, the crypto’s response to the news underscores just how critical an individual can be to a cryptocurrency’s value. That’s especially true for a less liquid and less utilized crypto such as Fantom.

The Fantom Foundation itself is confident its platform will be able to continue on without Nell’s and Cronje’s involvement. In its own response tweet, the foundation points out “Fantom isn’t and never was a one man team. There are 40+ people working at Fantom.” The Fantom Foundation’s Twitter account goes on to add, “Therefore, the development of Fantom won’t be impacted by Andre’s decision.”

The cryptocurrency market, however, isn’t so sure Fantom has a bright future without Cronje and Nell in it.

Falling stock chart on a computer monitor.

Image source: Getty Images.

Now what

The Fantom Foundation is right, by the way. While Nell and Cronje may have been instrumental in getting Fantom and the foundation up and running, that groundwork has already been fully laid. Their presence is no longer necessary. Their greatest value to the organization going forward was as spokespeople and advocates.

Still, a sharp sell-off stemming from the exit of two developers after the development work has been done indicating the sort of vulnerability that most investors would be wise to avoid… if at all possible. This unpredictable volatility may eventually pass, but in a crypto arena that’s getting crowded, Fantom may not be worth that wait. Would-be buyers would be better served by looking for other opportunities available right now.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thissis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

About the author

Publishing Team