FTM, the native token for the Fantom blockchain rallied on Saturday after DeFi developer Andre Cronje was spotted writing code on the chain.
FTM jumped 13% from intraday lows to $0.3746, outpacing all of the top-100 cryptocurrencies in the past 24 hours. The token’s rally was sparked by Github data showing Cronje is writing code for a Fantom stablecoin platform.
Cronje, who is considered one of the most prolific developers in DeFi, had abruptly left Fantom in early-March, along with lead developer Anton Nell. The move had caused a sharp selldown in FTM- one that the token has struggled to recover from.
But Cronje’s return to the platform comes amid troubled times. Fantom’s stablecoin, FUSD, has de-pegged sharply in the past week, and is deepening its losses.
FUSD’s depegging also comes after the implosion of Terra’s UST, which has made investors more skeptical of stablecoins.
Cronje trying to fix Fantom stablecoin crisis?
The developer appeared to be working on Fantom’s FMint protocol, a platform for minting FUSD. The move comes as extreme market pressure appears to have de-pegged the stablecoin.
FUSD is currently trading at $0.6972- well below its $1 peg, according to data from Coinmarketcap.
FUSD also appears to have tumbled after Fantom introduced changes to its stablecoin mechanism.
The protocol outlined steep collateralization requirements to maintain positions through FUSD. It also did not specify the time it would allow to cover positions.
FUSD will also see a dynamic interest rate. But judging by the sharp de-pegging of the token, it appears that traders are not enthused by the move.
“Father of DeFi” had denounced crypto
Cronje’s return to Fantom is surprising, considering that earlier comments from the developer suggested he had largely forsaken the crypto space.
In a blog post made earlier in April, Cronje had declared that “crypto is dead,” and had called for more regulation in the space. He had also denounced a focus on wealth building in the community, which had eclipsed crypto’s “core tenets.”
Cronje had also stressed that he had no intention of returning to the space. The developer’s Linkedin profile shows he is now heading an investment banking platform.
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