The 69th largest cryptocurrency by market capitalization, Fantom (FTM), has shown relative strength over the past seven days, rising 29%. Over the past 24 hours, it even stands at a gain of 10%.
Today’s surge comes after DeFi star programmer Andre Cronje published a Medium post about the “crypto company” Fantom, detailing its financial history.
In the article, Cronje describes that Fantom started with $40 million, mostly in ETH with an average price of $450 to $700. Due to the crypto winter at the time, Fantom shad to sell its ETH for less than $5 million.
After that, Fantom decided to go on a tough austerity drive, with a complete marketing freeze and only the most necessary staff. Among other things, listing fees for exchanges and sponsorship fees for influencers were never to be paid again.
Instead, the project pursued an aggressive strategy in decentralized financial solutions (DeFi). And success is proving Fantom right. As of November 2022, the company has grown from a $5 million budget to $1.5 billion.
Fantom’s Solid Coffers
Currently, Fantom has $100 million in stablecoins, $100 million in cryptocurrencies, and $50 million in non-crypto assets, among other assets. With current salary consumption, they have a 30-year runway.
The solid financial base has also allowed the project around Cronje to reject “further cooperation from Alameda.” Profits from DeFi strategies have also been used repeatedly to buy FTM.
In terms of competition, Cronje criticizes that selling its own tokens is a finite business model. This is another reason why Fantom’s foundation owns relatively few FTM:
Most comparable L1’s own between 50% – 80% of their token supply. At launch, Fantom owned less than 3%, today we own more than 14%. We prefer buying our tokens, we don’t ‘sell’ our tokens for ‘partnerships’.
The crypto community has been extremely supportive of the article in light of FTX’s handling of customer funds and token distribution in other projects.
Fantom (FTM) Faces Crucial Resistance
The fact that the crypto community supports and also uses Fantom is shown by recently published data from Nansen. According to this, Fantom, Arbitrum and Optimism currently have more active addresses per day than 7 months ago in one week.
On-chain activity is thriving
Fantom, Arbitrum & Optimism now have more active addresses per day than they had in a week 7 months ago#BNBChain 1.27M#Polygon 834K#Fantom 457K#Ethereum 420K#Solana (Wallet accounts) 299K#Arbitrum 74K#Optimism 42K#Avalanche C-Chain 35K pic.twitter.com/gkJRZcTc5a
— Nansen (@nansen_ai) November 23, 2022
However, a look at the Fantom daily chart reveals that FTM is at a critical point. To initiate a bullish breakout, FTM needs to recapture the crucial horizontal level at $0.22. Technical analysis shows the importance of this area.
The price action on the 1-day chart shows that FTM price has fallen sharply since reaching its three-month high at $0.3138 on November 5. Subsequently, FTM reached a low of $0.1645 on November 22.
Only if FTM can overcome the $0.22 mark, a new attempt at the November high of $0.31 could be on the cards. If not, there is currently not much support below the current low, which could mean a sharp decline towards $0.04.