One crypto project is outperforming most of the markets with a recent rally following an announcement from one of its key contributors.
Andre Cronje, a prolific developer in the decentralized finance (DeFi) space and “Architect” for the Fantom Foundation, says the project should be able to run for 30 years without having to sell a single FTM token.
In a blog post, Cronje reveals details of the project’s financials with a timeline of its development since 2018. According to the DeFi veteran, the Fantom Foundation has turned down multiple partnership offerings, including with Alameda Research, the trading arm of now-bankrupt crypto exchange FTX.
“5 Jan 2022 — Alameda asks for further cooperation, we pass.
14 Jan 2022 — An exchange asks us $300,000,000 for a listing, we pass.
May 2022 — $50,000,000 in losses having had treasury in BOO, CRV, YFI, CVX, and ETH. Still > $100,000,000 in stables.
Oct 2022 — An NFT exchange asks us $100,000,000 to deploy. We pass.
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)”
Cronje says that while most layer-one projects own the majority of their tokens and generate revenue by selling them off, Fantom owned just 3% at launch, and 14% today.
“Other than ETH, Fantom is the oldest non-fork L1 with any real TVL, we have been operating for over 4 years, we plan to continue operating for at least another 30 more. We have a proven track history of technological advancements and delivery.”
If your entire revenue model is selling your token, you are doing a disservice to yourself, your blockchain, and your supporters.”
Following the blog post, FTM bounced from the $0.17 range to well about $0.24 in less than two days for a 41% gain, making it one of the top performers in the crypto markets.
At time of writing, FTM is trading at $0.23, up 8% in the last 24 hours.
Featured Image: Shutterstock/Pakpoom Makpan/Andy Chipus