What happened to PHANTOM?
Anton Nell and Andre Cronje are two leading developers in the world of decentralized finance (DeFi) and blockchain. These two personalities, especially Andre Cronje, are extremely famous and talented developers. They belonged to the circle of the most important developers on a planetary scale and worked on a wide variety of projects.
These two personalities decided at the end of 2017 to join the FANTOM project. In 2018, they developed some of the key features of the blockchain. However, two developers have announced that they will end their partnership with the FANTOM project on April 3, 2022. They even clarified that they do not continue to work with DeFi and cryptocurrency all the time. Find their statement in this article from Journal Du Coin.
This announcement made a lot of noise because they were very important individuals for the project and even for the DeFi universe. Together they participated in the development of 25 applications and services on the blockchain. Among their most important creations are Yearn Finance or Chainlist.
When this announcement was made, a rumor spread that several important applications were about to leave the Fantom network, some thought that these applications would be closed due to the absence of two individuals who were considered important.
However, Fantom CEO Michael Kong quickly cleared things up on Twitter. He explained in essence that André Cronje, while important to Phantom, was not indispensable and that the project could continue to develop in that direction. André Cronje helped develop key features and was one of the pillars of the project, but within a few months his importance to the organization waned. He added that the two developers would indeed leave the various protocols they were working on, but those protocols would continue to operate as normal.
This announcement has greatly reassured those interested in the Fantom project. If you are one of them and want to take your cryptocurrency trading to the next level, you should definitely do it on trusted platforms like Kraken, Bitcoin Era or similar sites. Michael Kong also clarified that, for example, a protocol like Yearn Finance has more than 150 very high-level developers, and that despite the importance of Andre Cronje, these developers will be able to continue working and the protocol will continue to work normally. These are important and positive announcements for the Fantom project.
However, it should be noted that the Phantom’s situation is not the best. Indicators, as it were, indicate that the project is moving in the wrong direction. According to DeFi website Llama, Fantom has jumped from third to sixth in the world in terms of TVL (“Total Value Locked,” i.e. the value investors put into DeFi protocols) in a matter of months. After peaking at $12 billion in TVL, TVL Fantom’s total is down to about $6 billion today. Thus, in a few weeks in March 2022, half of the value stored in various blockchain protocols was removed.
To complete this data, it must also be said that the market capitalization of the FANTOM blockchain has also fallen. If at the beginning of March it was more than $5 billion, today it has risen to about $3 billion. At one point, the FANTOM blockchain managed to rise to 15th place by market capitalization, but now it has dropped to 44th place. Over the same period, the value of the cryptocurrency rose from $2 to $1.32 on March 24, 2022.
Poor performance for FANTOM, largely compromised future?
Now it is quite difficult to analyze the situation on the merits. There are things we don’t have. For example, we don’t know why Anton Nell and Andre Cronje left the project.
However, we can try to understand a bit by listening to what the two parties involved have to say. Firstly, we can say that André Cronje seems to be a person with a certain character, and it seems that he has been tired of the blockchain world for some time now, since he has already announced his retirement in the past. A few years ago, he already reported on this fatigue, saying that it was difficult for him to withstand some of the criticisms against him, despite his important work. He has already left DeFi for a while. So his departure today is not such a big surprise after all.
What’s even more surprising is that the CEO insisted many times on the fact that Andre Cronje didn’t make much of a difference for months. According to him, once it was important, but not now. In any case, what is certain is that for a project as important as FANTOM, which has many developers and is already well established and growing, it is even today difficult to imagine that the entire project could be based on a handful of personalities. FANTOM has a large ecosystem with many DeFi protocols, many of which were created by other developers.
Some media have taken this announcement as if it was the apocalypse for FANTOM, but it really isn’t. These announcement effects may partly explain FANTOM’s steep drop in the markets because the latter have a strong impact on confidence. It is possible that in the coming months FANTOM will pick up the slack and please investors who continue to believe in the project.