Robert Steinadler, 2 months ago

Fantom’s price jumped 17% after Cronje revealed the foundation's financial status

Fantom is not only a cryptocurrency, but its development is run by a foundation under the same name. The founder of this trust is Andre Cronje, who is perhaps one of the most influential figures in the DeFi space. Recently, he revealed the financial status of the Fantom Foundation and this had quite some impact on the market.

How is the Fantom Foundation doing, and why is this considered bullish news by many investors?

Many crypto ventures are failing

With the current crisis involving FTX and Alameda Research, a contagion effect is once again disrupting the market. Yesterday, BlockFi had to file for chapter 11 bankruptcy in the US, and many investors, as well as community members, are in fear that their favorite crypto project might be the next one that gets visited by the Grim Reaper.

This picture fails to grasp that the most risk is currently carried by CeFi lenders like BlockFi. Many of these companies carry a heavy burden and suffer from the convexity of a rising interest rate that is still driven up by the Fed.

Still, since many revelations of the past few weeks have been surprising and less pleasant, it is not irrational to be skeptical.

Fantom Foundation has a solid financial status

According to a blog post that was published by Andre Cronje himself, the Fantom Foundation is a healthy organization when it comes down to its financials. Cronje revealed how the foundation has been doing since its start.

It seems that DeFi was playing a huge factor in bolstering the treasury by aggressively investing in DeFi and using the profits to buy back the FTM token. The report also reveals that Fantom passed several offers from unnamed crypto exchanges and NFT marketplaces asking for between $100 million and $300 million to list FTM or integrate its NFTs. If those numbers are correct, then the Fantom Foundation saved a large chunk of money due to its responsible management.

According to the blog post, it has 450,000,000 FTM in its possession, which is worth roughly $96 million at the time of writing. Another $100,000,000 is sitting in stablecoins, less than $100,000,000 in other crypto assets, and about $50,000,000 in non-crypto assets. The Fantom Foundation is burning $7,000,000 per year for salaries, according to Cronje. He estimates that the Foundation could go on for 30 years without touching any of its FTM holdings. This reaffirmed trust of investors that the foundation would not dump any FTM and lead eventually to a price rally over the last 24 hours. Still, investors should take those numbers with a grain of salt, since they are derived from a blog post and not from an audited balance sheet.

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