Fantom native token, FTM, has surged by more than 6% today after Andre Cronje, one of the most prolific DeFi developers, was spotted doing some coding for the Fantom stablecoin platform.
Github data revealed the coding of the developer sparking an intraday FTM price rally from a low of $0.3243 to a high of $0.3755 outpacing all the top 100 cryptos.
At the time of writing, FTM was trading at $0.3599 up 6.78% in the last 24 hours.
Cronje back to the crypto space
Earlier in March, Cronje and Anton Nell announced that they have left Fantom and the crypto space at large. Their announcement caused a sharp sell-down of the token from which it had been struggling to recover.
Additionally, earlier in April, the developer declared in a blog post that “crypto is dead,” calling for more crypto regulations. He had also said that he had no intentions to come back to the crypto space but his Linkedin profile shows that he is currently heading an investment banking platform.
However, his return comes amid troubled times when FUSD, Fantom’s stablecoin, has been de-pegging gradually in the past week and is yet to recover. Its de-pegging comes after Terra UST also de-pegged from the US dollar making investors more skeptical about stabelcoins.
Working on the Fantom catastrophe
Cronje seems to be working on the Fantom FMint protocol, a platform on which FUSD is minted. The move comes amid the market pressure that has de-pegged the FUSD stablecoin, besides, the changes that Fantom introduced to its stablecoin mechanism also seemed to have tumbled FUSD, which is still below the $1 peg ($0.7013, down 12.74%).
New FIP out!
Read on to learn about proposed changes to sFTM and fUSD.
Addressing:– liquidations– how to repay outstanding debt– LTVs and minting limits
We welcome everyone to leave comments on Github.
— Fantom Foundation (@FantomFDN) May 20, 2022
The protocol did outline some of the measures they will take to maintain the position through the stablecoin but did not specify the time it will allow position covering.
FUSD interest rate is expected to rise but according to the gradual FUSD de-pegging, it seems that the traders are not yet convinced by the move.