Fantom cryptocurrency (CRYPTO: FTM) fell 16% at 13:25 pm ET on Sunday after a tweet from Anton Nell that he and Andre Cronje are leaving the decentralized finance (crypto) industry. Cronje is a prolific coder who has done extensive work on Fantom, and Nell is - or was - the senior solutions architect for the Fantom Foundation. Many of the applications the developer duo helped manage will also close.
What's going on?
There is no ill will or internal conflict driving the decision, for the record. Nell's tweet explains that "this is not an impulsive reaction to the hatred received from the release of a project, but a decision that has been coming for some time." However, the cryptocurrency's response to the news underscores how critical an individual can be to the value of a cryptocurrency. This is especially true of a less liquid and less used cryptocurrency like Fantom.
The Fantom Foundation itself is confident that its platform will be able to continue without the involvement of Nell and Cronje. In its response tweet, the foundation points out that “Fantom is not and has never been a one-man team. There are more than 40 people working at Fantom ”. The Fantom Foundation Twitter account continues to add: "Therefore, Fantom's development will not be affected by Andre's decision."
The cryptocurrency market, however, isn't so sure Fantom has a bright future without Cronje and Nell.
And now what will happen to the project?
The Fantom Foundation is right, however. While Nell and Cronje may have been instrumental in getting Fantom and the foundation up and running, that foundation has already been fully laid. Their presence is no longer necessary. Their greatest value to the organization going forward was as spokespersons and supporters.
However, a sharp sell-off resulting from the exit of two developers after development work has been done indicates the kind of vulnerability most investors would be wise to avoid… if possible. This unpredictable volatility may eventually pass, but in a cryptocurrency arena that's getting crowded, Fantom may not be worth the wait. Would-be buyers would be better served by looking for other opportunities available right now.
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