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Coin Healthcheck: Fantom (FTM)

CryptocurrencyNov 23, 2021 12:30AM ET
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Coin Healthcheck: Fantom (FTM)

About Fantom (FTM) is the native token of the Fantom network, which was designed to overcome limitations of proof-of-work (PoW) blockchains and offer a faster, cheaper, and more secure alternative.

The platform was founded by Fantom Foundation in 2018, the same year the FTM token was issued. At the end of 2019, Fantom deployed the mainnet environment to build decentralized apps, called Opera (NASDAQ:OPRA).

State of Project Fantom aims to solve the blockchain trilemma by finding the right balance among transaction speed, security, and decentralization. It uses a specific consensus algorithm (aBFT) that increases transaction speed and throughput.

The main use case of FMT is to secure decentralization of the Fantom network via a proof-of- stake (PoS) algorithm. Users can stake FMTs or lock them on the liquidity pool.

The Fantom token is also used for payments, fees, and on-chain governance.

FTM is available as a native mainnet token, as ERC-20 and BEP-2 tokens.

Competition: There are multiple competitors in the “Ethereum-killer” category. Cardano and Solana are among the most prominent.

Ethereum itself is on the way to proof-of-stake.

Website & Whitepaper: Decent website, blog, contacts, technical papers, community links.

Technical whitepaper provides a detailed explanation of technology, infrastructure, and use cases.

Whitepaper lacks updated roadmap.

Development stage: Opera mainnet launched in 2019.

80+ dApps already deployed on Fantom.

Integrated Chainlink as its official oracle solution and price feed mechanism for the FTM.

Integrated with RenBridge for cross-chain transactions.

Integrated with Orion Protocol that aggregates CEX, DEX, and swap pools into one decentralized platform.

Partnership to bring Fantom blockchain applications to the Uzbekistan government’s IT infrastructure.

Partnership with SuperFarm to launch NFT drops, farms, and NFTs.

Roadmap: Future development plans end with 2Q of 2020. No updates since.

Plans to launch native crypto exchange for FTM tokens by Q4 2021.

Fundraising: ICO and presale ($0.0438) raised $39.6 million in 2018.

ICO return of investment at ATH was over 7,816.6%.

KYC requirements were mandatory for ICO.

Australia, China, South Korea, and United States were restricted from investment.

Capital distribution: development and application of ecosystem (50%), marketing (30%), operation expenses (20%).

Team Team of 14 foundation members, led by South Korean computer scientist PhD Ahn Byung lk, a prominent entrepreneur who received the South Korean President Award for successful IT business, featured in South Korea’s major business outlets.

As of 2020, the new CEO and CIO is Michael Kong, who has been in the crypto space since 2016.

15 development team members.

12 advisory board members, including Steve Bellotti, with 22 years of international investment experience.

Venture Capital investors include Alameda Research, HyperChain Capital, Blockwater Capital, TCM, Signum Capital, Obsidian Capital, 8 Decimal Capital, and DHVC.

Community Social media accounts: Twitter (NYSE:TWTR) (233.5K), Telegram (26.5K), Discord (5K), Reddit (20.7K).

Regular posts, weekly discussions initiated by Fantom Foundation, active communities.

Key Metrics Max supply: 3.175 billion

Circulating supply: 2.55 billion

Market Cap: $6.5 billion

Trading Volume: 300-700M/24h.

Total value locked (TVL): $4.5B are locked on DeFi projects on Fantom.

Exchange listings: Listed on 100 cryptocurrency exchanges including Binance, KuCoin, FTX, and Uniswap. You can find the full list here.

Token allocation: Token distribution: token sale (40%), team & founders (15%), advisors & contributors (15%), market development (30%).

Over 53K wallets on the Ethereum network.

Over 28K wallets on Binance Smart Chain.

FTM tokens that are not in circulation are reserved for staking rewards.

Wallets: Compatible with more than12 wallets, including Ledger, Metamask, Trust Wallet, or Coinbase (NASDAQ:COIN) Wallet. Find the full list here.

Price movements: ATH of $3.46 (Oct 2021)

All-time low of $0.00190227 (Mar 2020)

FTM is less than 30% below ATH at the time of writing.

Verdict

  • Fantom has solid fundamentals, but also stiff competition around it. The project does not provide development plans past 2020, thus it’s difficult to guess what milestones are in its future plans.
  • It has a large team of developers, legit founders, and venture capital backing. All factors suggest the Fantom project is treated seriously.
  • The FTM token is listed on several of the biggest crypto exchanges. Token listings on centralized exchanges is a highly complicated and regulated process that tries to filter out unsustainable or scam projects.
  • Fantom is a project with a medium market cap, meaning that the growth potential is relatively high, but so is the risk level compared with large market-cap cryptos. FTM reached its all-time high just a month ago.
  • DeFi TVL on Fantom is almost 34x smaller than on ETH, 2.7x smaller than on Solana, and slightly bigger than on Polygon. Fantom has enough room to grow, but stringent DeFi regulations could be the biggest risk for it in the long term.

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Coin Healthcheck: Fantom (FTM)
 

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