FTM price soars amid news on Fantom’s financial health
Fantom price soared by more than 17% early Tuesday as the DeFi platform’s market cap hit $500 million.
Andre Cronje shared a breakdown of Fantom’s finances, stating that the platform is ‘cash flow positive’ with over $450 million.
He revealed Fantom refused to pay millions to be listed on certain exchanges or deployed on NFT platforms.
Fantom (FTM) is up more than 26% in the past seven days, with double digit pops for the FTM token as well as other ecosystem tokens over the past 24 hours. The dash to buy Fantom pushed the token’s price above $0.215.
Fantom price jumps 17% as market cap hits $500 million
Data on CoinGecko shows Fantom price surged from a low of $0.178 on Tuesday morning, hitting intraday highs of $0.219 and a daily volume of more than $200 million. The cryptocurrency’s market cap rose above $500 million and was around $546 million as at 8:15 am ET.
Fantom projects such as Scream (CREAM) and Geist Finance (GEIST) were also trading higher.
Why did Fantom price surge?
The crypto market remains largely bearish, with recent events around the collapse of FTX and other platforms contributing to the jitters that have seen major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) hover near multi-month lows.
As for Fantom, although the latest upside has helped cut the DeFi token’s losses over the past 30 days to under 5%, a look at the charts shows the price of Fantom remains more than 93% down on its all-time high of $3.46 reached in late October 2021.
But what pushed the FTM price to its highest level since early November?
The answer is in a wave of fresh optimism sweeping through the Fantom ecosystem after a dose of great news regarding the financial state of the crypto company. In short, crypto developer Andre Cronje shared details that basically show Fantom is financially healthy.
Fantom is ‘cash flow positive’
According to Cronje, Fantom’s treasury currently holds more than 450 million FTM, over $100 million in stablecoins, and more than $100 million in crypto assets. The DeFi platform also holds $50 million in non-crypto assets, giving the company approximately 30 years of runway even with a salary burn rate of $7 million a year.
And notably, Fantom won’t have to sell FTM to stay in the green financially for the next several years. With more than $10 million earned annually from validators, delegators, various DeFi strategies and network fees, Fantom is “cash flow positive” and scaling, Cronje noted.
On lessons learnt as multiple crypto projects file for bankruptcy, he wrote:
“If your entire revenue model is selling your token, you are doing a disservice to yourself, your blockchain, and your supporters.”
Cronje also revealed that Fantom had refused to part with millions of dollars in return for listings, partnerships and deployment on an NFT marketplace.
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