Andre Cronje Called Back Again To Fantom, FTM Prices Immediately Rise

JAKARTA – The price of Fantom (FTM) has increased 9.5 percent in the past week, according to data from Coingecko. On May 22 yesterday FTM experienced a positive increase to reach an intraday high of 0.4512 on May 22 yesterday.

The increase was triggered by speculation that former Yearn Finance developer, Andre Cronje, was returning to Fantom. In March, Fantom founders Cronje and Anton Nell reportedly left Fantom.

This triggered an FTM sell-off from its community. Causing FTM prices to drop significantly. In addition, the total locked value (TVL) in the Fantom ecosystem is also affected. TVL Fantom plunged from 8.19 billion dollars in March to 1.3 billion dollars.

“Andre Cronje released the USD Fantom optimization proposal. AC Address recently added nearly 100 million FTM, which is thought to be returning to Fantom. FUSD experienced severe de-pegging, and Fantom TVL also fell sharply by around 69,” reported a journalist from China, Collin Wu.

Amid the slump in algorithmic stablecoin TerraUSD (UST), stablecoin Fantom USD (FUSD) also slipped from its peg, the US dollar. As of writing FUSD is trading at $0.7 per token, down 24.4 percent in the past week. In addition, the stablecoin in the Fantom ecosystem, Deus Finance (DEI) has also suffered the same fate. DEI 17.0 percent on the week, now trading at 0.73 US dollars.

Due to the decline in the price of Fantom's stablecoin, investors are worried about the fate of TerraUSD. Responding to this, Fantom stated that FUSD is not UST. FUSD also has a different mechanism with UST. The developer states that fUSD is similar to DAI and is backed by the staked FTM, reported by U.Today.