Fantom (FTM): Major Developers Abandon The Project
Fantom is one of the top blockchains for decentralized applications. Right now it's the fifth blockchain by rank on defillama with 7.19 billion dollars locked on its ecosystem. Some of the highest APY pairs live on this blockchain.
On this weekend Anton Nell and Andre Cronje announced that they will be leaving the crypto space entirely and with them leaving, some dapps are going to be shutdown.
There are a total of 25 apps that are going to suffer from this, including the best known Yearn Finance (YFI), Keep3r (KP3R) and Multichain (Multi). It's expected that this projects will cease services on the Fantom blockchain with some projects already mentioning on their home page that they will stop working after a certain date.
This event caused Fantom and the majority of its projects to fall hard in price. After the news FTM fell 16%, YFI fell 11%, KEP3R 27% and Multi 19%.
Things get worst when thinking on an investor perspective, if someone is invested on this projects they have a deadline to withdraw their funds, whether they are down on their investment or not they have to take it off. Some of them will have to take and sell their investment at a loss or move it somewhere else while being down. Liquidity farms have impermanent loss, this losses only go away if the price of the two coins which are in the liquidity farm stabilize again, this might take time to happen and time is a thing that investors don't have on some of this projects, they have a deadline.
All of these brings a question whether this platforms where fully decentralized or not and it seems that they weren't. Two people leaving a project shouldn't been a reason to close it. If the project is truly decentralized, it should have the ability to live without its creators and main developers on the time of its inception.
Fantom is a chain that works very well and one that is user friendly. This is a blow that Fantom should survive because there are many other great projects on Fantom like SpookySwap. Although Fantom shouldn't suffer directly from some people leaving the space, the truth is that it suffer.
Blockchains are not people but the market tends to react sideways when some major developer or creator leaves the space. This happened to a lot of blockchains including Litecoin when its creator sold his coins on the top of the market in 2018. Lets see how the market reacts after the dust settles.
Best Regards,
Cryptopeach
