Inventing Andre: Debunking the Fantom Feud, On-Chain Outlook, Edition #30 (14/03/2022)
The King of Crypto has abdicated his throne - with almost US$ 3 Billion wiped out from Fantom's total value locked. Q tells all in the latest update on-chain in this Monday special feature 👇
Cryptocurrency: The King is Dead, Long Live the King!
Interesting. Yet, scary.
An apt description for developments over the past week in financial markets;
Andre & Anton quit the Fantom ecosystem
The Russia-Ukraine war rages on as peace talks set to resume
Nickel (LME: Nickel) prices trade at almost double causing a trading halt on the Nickel market
For those still in the process of becoming involved in the crypto community, let’s start off with what most all would probably be wondering.
Andre. Anton. And Fantom.
It was a shock announcement for layer-1 blockchain participants.
The technical adviser and senior solutions architect of the foundation are also set to depart from the DeFi space entirely, as seen in this tweet.
Often regarded as the king of DeFi, Anton Cronje was seen as the pioneer behind Fantom which was why this news was difficult for many to take.
Unsurprisingly, sentiments on Crypto-Twitter were mixed.
Observe one sample of many below, where the original poster apparently calls the much dreaded ‘bear market’.
Recall that theory states economic contraction—i.e. recession, bear market—is a healthy function of markets. But for market participants who have become acclimated to the recent greener pastures, the thought is surely concerning.
Anton Nell @AntonNellCryptoAndre and I have decided that we are closing the chapter of contibuting to the defi/crypto space. There are around ~25 apps and services that we are terminating on 03 April 2022. 1/3
A statement from the Fantom Foundation looks to placate some of the ensuing uncertainty and downside that erupted in markets. Referring to point three of the statement:
Andre and Anton did not “terminate” 25 projects. Any involvement (such as user interface) in these projects was to be handed over to the existing teams, many of whom had been developing and running independently. For example, both Multichain and Yearn Finance have teams that have been operating for years.
The CEO/CIO of Fantom also came out and wrote this thread that outlines the reality of the situation. The ‘truth’ is that none of the projects is being ended, rather Andre and Anton’s contribution will be coming to an end.
If one reads further into the tweet, Michael essentially outlines that Andre was an advisor on the project and his involvement in many of the projects was limited.
Read on to see how the On-Chain update now takes a special twist for Qluster Research readers…
Qluster Data Labs: The latest foray on-chain reveals some interesting findings worthy of note in Fantom’s metrics.
When assessing the on-chain aspect for Fantom, the analysis begins with the announcement made by Anton.
The announcement went live on the 6th of March at approximately 8:30 pm Australian Eastern standard time (UTC/GMT+10).
If the practitioner examines the chart below, we can see that the supply held by Fantom’s top wallet holders has been decreasing on the 4th of March.
Note that this is around two days before the announcement by Anton.
Above: $FTM, Active Addresses in the last 24 hours and Supply held by the top addresses as a percentage of total supply.
Timeline of Anton’s announcement outlined underneath.
While it is difficult to accurately pinpoint the identity of who dumped prior to the announcement, the findings from this analysis of action on-chain in terms of supply held by top holders decreasing bears little reason for surprise.
Now that we’ve dissected the context, let’s dive into an update on-chain for Bitcoin & Ethereum…
As anticipated, the latest view finds supply on exchanges dropping to hit all-time lows.
This appears to align with the standing narrative, a continuation of Edition #29.
Ethereum looks content to follow suit with Bitcoin’s lead.
Despite the ‘number two’ cryptocurrency featuring in this week’s episode of Midweek Update: Charting with Griff, markets saw an initial bump in supply on exchanges—which remains unchanged.
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Logging Off-Chain: A closing note…
No doubt. The King of DeFi abdicating his throne in crypto and shutting down his Twitter accounts was an eerie signal to the market.
Without pulling out any tin foil hats, there appear to be whispers that it almost seems like Andre was in some way forced in this decision—considering his genuine and enthusiastic presence in the space, which was often reflected through his tweets.
There may yet be more to Andre and Anton’s story than what seems at face value.
In the coming on-chain update, Qluster Data Labs looks to revisit the illiquid supply shock ratio and how it will affect Bitcoin from a macro perspective. Stay tuned for our next Technical and On-Chain Outlook with the brand-new iOS mobile app.
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See you again for the next update.
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