Why is Fantom crypto witnessing selling pressure?

Holders of Fantom (FTM) coin were in for a rude shock on Monday after the token lost significant ground over the weekend.

Fantom has dropped 21% over the past 24 hours after a significant fall on Sunday.

The smart contract platform had been priced at US$1.68 at around 2pm on Sunday before a drop to US$1.42 late on Sunday evening. The crypto fell further this morning to hit US$1.33 where it sits at time of writing.

Image Source:  © Moxumbic | Megapixl.com

What fuelled Fantom’s fall?  

The sudden drop came as two of Fantom’s earliest developers, Anton Nell and Andre Cronje, announced that they’d be leaving the company. Nell made the announcement via Twitter, stating that the pair would not just be leaving the company, but also leaving the decentralised finance (DeFi) industry altogether.

Additionally, several of the apps on Fantom that the pair developed will also be shut down.

Why the exit?

Nell’s tweet was quick to point out that the exit of the two developers was not the result of an internal conflict or any external criticism. Rather, he said the decision had been a long time coming.

What’s Fantom Foundation saying?

While the price of Fantom has suffered as a result of the announcement stating Nell and Cronje’s imminent departure, the Fantom Foundation has been quick to point out that Fantom was never a one-man operation. In its own tweet, the foundation said they’re confident the platform will be able to continue without Nell and Cronje’s involvement.

However, judging by the drop in Fantom’s price, it would appear the market is not so confident. That being said, there are over 40 other developers working for Fantom’s team.

Be that as it may, the market’s response to the news emphasises just how critical one or two people can be to the value of a particular token, especially for less liquid and less utilised tokens, like Fantom.

Bottom line

The past 24 hours for Fantom reiterate the volatility of the crypto space. While the Fantom Foundation claims that the platform will not be deterred by Nell and Cronje’s departure, the market’s reaction to the news underpins the vulnerability of the crypto space.

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