Thread by @defihumair

1- #Fantom is Up 25% in 2 days Let’s discuss FTM’s next price move after Andre Cronje’s article
$FTM
🧵👇
cryptoavanza.com/fantom-up-25-i…

2- Andre #Cronje a software architect with 20 years plus of development experience, says that the #Fantom blockchain project he advises has a positive cash flow and brings in more than $10 million a year.
$FTM

3- Why is #Fantom Token Price Rising
Just a recap about $FTM is a layer 1 decentralized, permissionless, open-source smart contract platform for #dApps & digital assets like #Ethereum. The network competes with Solana, Avalanche, and Polygon to take over the market share of $ETH.

4- Cronje shared a medium blog post on Monday 28-11-22 about #Fantom: an inside financial peek at being a “crypto company” after he shared the company's journey of revenue the price of fantom rising everyone on Twitter talked about $FTM revenue.
@AndreCronjeTech

5- When Cronje shared the post on Twitter price of #FTMUSDT was 0.188 at this time I’m writing price is around 0.24 which is 27% increase in just 2 days.
@AndreCronjeTech $FTM

6- 🟢So what’s the impact on the $FTM token after this blog post let’s discuss it in deep dive.

🟢what is the next price move of $FTM?
#Fantom @FantomFDN

7- According to the blog post, Andre Cronje is a long-serving figure in the #DeFi space. Fantom’s reported treasury is made up of around 450 million $FTM ($85.7 million),

8- which is 17.6% of its total supply. The current total supply of #Fantom is 2.55 billion, as per CoinMarketCap. There’s also $100 million in stablecoins and $100 million in other cryptocurrencies not mentioned in the blog post, as well as $50 million in non-crypto assets.
$ftm

9- Who is @AndreCronjeTech?
Cronje is one of the most influential people in the #DeFi space. He is best known for creating @iearnfinance & @Keep3rVI, as well as his participation in other high-profile DeFi projects. His last five years have been spent building bespoke FinTech

10- #Fantom Journey
They raised $40 million from initial token sales in June 2018, mostly in $ETH at a price of $450-750 (at this time ETH around 1$260)
$FTM

11- In June 2020 Company made #DeFi strategies like comping, they do Yield farming on Compound and Synthetix earning from sUSD and COMP tokens in which they earn $20k to $40K per week.
$FTM

11- February 2021, the @FantomFDN would be making more than $1 million per week. Back then, the crypto market was booming. DeFi tokens were going through the roof, #bitcoin was getting close to $60,000 for the first time, and yield farming was still a good way to make money. $FTM

13- In the same month, the project sold 81.5 million FTM to @SBF_FTX trading firm #Alameda for almost $35 million average $FTM token price of around ($0.428831 per token) (Now at this time of writing FTM is worth half) and another 10.4 million FTM to @BlockTower for $5 million

14- At this time $FTM is down more than 88% year to date, dropping from $2.25 to less than $0.24. FTM’s market cap is now less than $650 million, ranked 63rd by coinmarketcap

15- But Fantom’s (TVL) is suffering even more than its token price. As per @DefiLlama, TVL of $FTM is worth $458 million in USD, which is down from $8.07 billion on March 3-22. As per the market cap of #FTM tokens, 75% of the tokens are looked at and 25% are unlocked. 😍

16- Income / Revenue
Cronje said with an average daily transaction fee of 30,000 $FTM this earns us >1 million / year. The average fee per transaction is less than $0.005. Fantom runs 9 validators, for a total stake of 60 million #FTM. This earns us ~4.1million $FTM / year and

17- “#Fantom earns ~$5.9 million from various #defi strategies across the Fantom and Ethereum ecosystems.” “We are cash flow positive.” “We are still scaling up.” @AndreCronjeTech $ftm

18- With transaction fees, validator and delegate earnings, and other income, #Fantom makes more than $10 million a year. However, this number does not include capital gains tax and seems to be based on FTM’s current valuation.
$FTM

19- Cronje says that #Fantom now chooses to buy its own token instead of trading it for partnerships, integrations, or listings on crypto exchanges. He also said most Layer 1 project founders own 50% to 80% of token supply because their projects are based on token sales,
$FTM

20- which is a finite model because they sold coins to run the business and earn profit from token holdings when prices are high. This model works on the bull market, not the bear market.
$FTM @FantomFDN

21- he claimed fantom owned less than 3% of token supply and “today we own more than 14%.” as per the above Cronje said $450 million #FTM in treasury which is around 17.6% supply of $FTM tokens as of today's circulation supply which is $2.55 billion.
@FantomFDN @AndreCronjeTech

22- “On the other hand, #Messari indicates Fantom’s founders, team and advisors collectively garnered roughly 20% of the token supply, more-or-less in line with $AVAX and $Sol. Polygon’s team however kept almost 42% of the initial supply,” per @MessariCrypto.
@Blockworks_
$FTM

23- “We build the most scalable and robust L1. Network revenue is something unique to Fantom, but again, these fees aren’t planned for the foundation, they will become platform revenue for #dapps launching on #Fantom.
$FTM

24- This again, is not a core business, any #dapp launching on #Fantom will earn these, not us. Decentralized finance & treasury management, while history has proven very successful for Fantom, is not our core business.” said by @AndreCronjeTech
$FTM

25- “Blockchain companies, realistically, only make money by selling their token, these are finite models.”

Companies spend lots of time comparing infinite and finite models three questions they solved for ourself
Cronje 3 questions 👇

26- “what impact does this partnership make in 10 years”

“how do we sustain this action in 10 years”

“If we pay for this launch, how long before this partner simply deploys on other chains”

27- he compared other L1 blockchains like $SOL and many newborn L1 chains, Fantom operational for over 4 years, and we oldest L1 after Ethereum. “We have a proven track history of technological advancements and delivery.”
$FTM

28- “If your entire revenue model is selling your token, you are doing a disservice to yourself, your blockchain, and your supporters.”

“If defi didn’t exist, we would likely not be operational today. I believe the same is true for many companies out there.”

29- “Crypto is dead. Long live crypto.” @AndreCronjeTech @FantomFDN

30-🟢What is the next price move of $FTM?
Weekly timeframe, #FTMUSDT market structure is a heavy downtrend but we wait for this weekly closing if #FTM holds $0.22 support then the next price upward target is around $0.30 otherwise next support is around $0.10

31- Conclusion
Cronje article indicating $FTM major earning from Defi strategies across the Fantom and Ethereum ecosystems, #Fantom Teasury owns 18% of its own token supply and does not sell tokens; rather, they validate the network and earn a network fee, which is good strategy

@UnrollHelper