Fantom ecosystem tokens plunged 33% over the last 24 hours following the exit of influential developer Andre Cronje. Before his exit, Cronje had been working on developing decentralized finance (DeFi) projects. DeFi is a multi-billion-dollar sector that uses smart contracts to undertake agreements instead of relying on third-party or middlemen facilitators.
Investors first began to suspect Cronje’s departure after updating his LinkedIn bio to reflect the change. A short time later, business partner Anton Nell confirmed the exit of the former adviser to the Fantom Foundation in a tweet which read:
“Andre and I have decided that we are closing the chapter of contributing to the defi/crypto space. There are around ~25 apps and services that we are terminating on 03 April 2022.”
Fantom (FTM) declined by about 30 cents within an hour of Nell’s tweet, as there was a mixed bag of reactions. While some supported the move, others viewed it as suspicious. FTM dropped further to a weekly low of $1.32 during the Asian pre-trading session before recovering to its current price of $1.42.
Furthermore, the price slump also led to a 20% decline over the last 24 hours of the total value locked (TVL) in Fantom-based DeFi protocols.
In terms of market cap, Fantom ecosystem projects have lost an overall value of $1.5 billion.
Image Credits: Pixabay
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