‘Long live crypto’: FTM jumps, as Andre Cronje says Fantom would ‘not exist without DeFi’
14:29, 29 November 2022
Fantom token (FTM) jumped to $0.2175 after the decentralised finance (DeFi) developer Andre Cronje wrote that his project, Fantom Foundation, was “cash positive” and generating more than $10m in annual revenue.
Fantom’s treasury maintains $340m in assets, Cronje said, in a blog post that sought to reassure investors about the project’s financials.
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DeFi to the rescue
“If DeFi didn’t exist, we would likely not be operational today,” Cronje, who has been nicknamed the “DeFi Godfather”, concluded.
Cronje detailed Fantom’s development over the past four years in the post, titled Fantom: an inside financial peek at being a “crypto company”.
In 2018, the project raised $40m, but significant amounts were spent on cryptocurrency platform listing fees and sponsorships.
Within two years, Fantom’s balance sheet shrank to $4m. “We decided to never pay for exchange listings or influencers again,” Cronje said.
In February 2020, the Fantom team decided to start “aggressively participating in decentralised finance using profits to purchase FTM.”
The strategy paid off, and by July 2020, Fantom’s treasury grew to $8m, predominantly thanks to yield farming. And by the end of October 2022, Fantom was almost at $40m, the amount it had originally raised.
DeFi continues to be a big driver of Fantom’s revenues as the project earns almost $6m from various DeFi strategies across the Fantom and Ethereum ecosystems, according to Cronje's figures.
‘Long live crypto’
Cronje, a known figure in cryptocurrency circles, made headlines in March 2022 as he announced that he was quitting his projects and leaving the industry altogether.
In blog posts published the following month, Cronje expressed his disdain for the current crypto culture and called for more regulation.
At the beginning of November, Cronje made a comeback. He is currently serving as an “architect at Fantom Foundation,” according to his LinkedIn profile.
“Crypto is dead. Long live crypto.” he proclaimed in yesterday’s post.
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