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Fantom (FTM) is a project that continues to attract new traders and developers. This high-performance layer 1 blockchain was built to be scalable and EVM-compatible. Since its launch, the network has captured the attention of traders due to its unique characteristics and its large active community.
A lot has happened since Fantom entered the market years prior. Today, the network continues to raise eyebrows for its functionality and overall performance. Notably, FTM is one of the few cryptos that has managed to see gains during this latest FTX fiasco. Impressively, FTM recently secured a 37% increase recently due to a variety of factors.
FTX Concerns Dispelled
One of the most important things that Fantom did this month was to dispel fears about their FTX association. The FTX exchange was one of the largest CEX (Centralized Exchanges) in operation when it failed just a few weeks ago. The sheer size of the bankruptcy, and the fact that FTX was integrated into so many other platforms, led the market to retract suddenly upon the revelation the exchange had shady dealings.
Fantom had to take to the offensive as the network had previously been vocal about their FTX affiliation. Specifically, in February 2021, Alameda, the now infamous hedge fund associated with FTX, purchased $35 million in FTM tokens. The group made this purchase to be able to qualify as a validator on the network.
In January 2022, Alameda wanted to go deeper into the partnership. The group offered to invest millions into the platform but was denied. The team at Fantom was concerned about centralization and decided against the actions. Notably, this week the group took to social media to show the world that FTX couldn't drag it down into the mess it created.
Fantom (FTM) Has Reserves
On Monday, November 28th, Andre Cronje, a core member of the Fantom Foundation, posted an article on the company's medium that goes in-depth into the firm's reserves. The report highlights the financial status of the platform which is apparently in excellent health. According to the reserves presented and the expenses of the exchange, the network has 30 years of funding until it would even need to cut into its FTM reserves.
Specifically, the medium report showed the firm holds $100 million in stablecoins, $100 million in cryptos, and $50,000,000 in non-crypto assets. All of these reserves are held in cold storage which means they are not online where hackers can access the funding. According to company documentation, FTM has secured $10 million in profits annually since launch and has +450 million in FTM reserves.
Ledger Live is Active
Another major announcement that has given FTM holders a reason to celebrate is the Ledger integration. Ledger is one of the top recognized hardware wallet manufacturers in the crypto market. Ledger hardware wallets are recognized as among the safest and most secure in the world.
This month saw FTM go live on the Ledger suite. The Ledger Live Application now enables users to store, buy, sell, and trade, FTM tokens directly from cold storage. The Ledger Live App is the most popular hardware wallet application in the market currently. Adding FTM to its accepted cryptos is a major milestone for the network and will improve long-term storability for these digital assets.
The Ledger Live integration couldn’t have come at a better time. Already, there is a mass exodus from custodial wallets occurring in the market. Users have learned that if they don’t hold their own crypto, then there is a good chance they may never see it again. As such, non-custodial options such as hardware wallets are seeing massive adoption. FTM users can enjoy high-security thanks to the Ledger Live upgrade.
Those in the Fantom development community also have reason to celebrate as the Fantom-Gitcoin grant program is now live. This proposal was passed by the community last month. It includes cutting the transaction fees to create a new development fund. The fund will focus on helping Fantom projects that drive adoption launch successfully.
According to the proposal, the community will have the final say on what protocols get the added boost. The network has already put aside 125,000 FTM tokens to make the fund a reality. They stated that this number will increase as the network fees begin to add up. Specifically, these funds are marked to drive Fantom-based DeFi, gaming, NFTs, and infrastructure projects.
Fiat On Ramp – Fantom (FTM)
It just got a lot easier to enter the FTM ecosystem thanks to a partnership with the Ramp Network. The ramp network offers direct fiat-to-crypto conversion services via a highly secure and easy-to-navigate interface. This integration is a major upgrade as until recently, converting fiat into FTM tokens required the added step of leveraging a CEX.
CEXs are notoriously intrusive regarding personal information. They are also notoriously bad at keeping this data away from hackers. Eliminating them from the onboarding process is a great way to improve security and privacy. It also creates a bridge for a user who wants to jump from centralized to decentralized economies.
The Fantom Foundation, the non-profit pushing large-scale adoption of the network, has made some major changes to the network recently as well. The foundation announced that it would increase the network’s burn rate from 20% to 5%. Token burns are a great way to drive values up. The concept is simple. You gain demand when you reduce the circulating supply of the asset.
Fantom (FTM) – A Project on the Move
After reviewing Fantoms' development, it's easy to see that this network is in motion. The team behind the Fantom protocol has done their research and has provided the market with a low-cost high performance offering. The latest reserves announcement demonstrated the team's commitment to its users as well. All of these factors are just a few of the reasons why Fantom (FTM) remains a popular project to watch in 2023.