- 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 said Fantom would not pay millions to be listed or deployed on NFT platforms.
Fantom’s (FTM) price is up 26% in the last seven days. There have been double-digit jumps for FTM tokens and other ecosystem tokens during the past 24hrs. The dash to buy Fantom pushed the token’s price above $0.215.
Fantom’s price rises 17% when market cap reaches $500 million
According to CoinGecko data, Fantom’s price soared from $0.178 on Tuesday morning to $0.219 intraday highs and more than $200 million daily volume. The cryptocurrency’s market cap rose above $500 million and was around $546 million as at 8:15 am ET.
Also, Fantom projects Geist Finance and Scream (CREAM), were trading higher.
What caused the price rise of Fantom?
The crypto market is still largely bearish. Recent events surrounding the collapse of FTX, other platforms, and other platforms have contributed to the jitters that has seen major cryptocurrencies such as Bitcoin (BTC), and Ethereum (ETH), hover close to 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.
What is the reason why FTM prices have risen to their highest levels since November early?
After receiving some great news about the financial health of crypto company Fantom, there is a new wave of optimism that has swept through the Fantom ecosystem. In short, crypto developer Andre Cronje shared details These numbers basically prove Fantom’s financial health.
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. DeFi also has $50 million in noncrypto assets. This gives the company about 30 years runway, even with a $7 million salary burn rate.
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.
He wrote about the lessons he learned from multiple cryptocurrency projects filing for bankruptcy
“If your entire revenue model is selling your token, you are doing a disservice to yourself, your blockchain, and your supporters.”
Cronje also stated that Fantom was refusing to part with millions in exchange for listings, partnerships, and deployments on an NFT marketplace.