Phantom native cryptocurrency of the blockchain FTMDeFi developer Andre Cronje had a pretty significant rebound on Saturday after it was discovered that he had been writing code on the chain.
FTM rose over 40 percent from intraday lows to as high as $0.45, outpacing most of the top 100 cryptocurrencies in the past 24 hours. The token’s rally was fueled by Github data showing Cronje writing code for a Phantom stablecoin platform.
Considered one of the most prolific developers in DeFi, Cronje announced that they were abruptly leaving Phantom in early March, along with lead developer Anton Nell. This surprising move caused a sharp drop in FTM that the token is still struggling to recover.
According to a tweet by Anton Nell on March 6, Andre Cronje, developer of Yearn.Finance and Keep3r, had resigned along with fellow software architect Anton Nell.
Phantom CEO Michael Kong made a statement on Telegram in response to these statements; He stated that users do not need to worry, that the platform will follow the steps in the roadmap and that Cronje does not want to be in the spotlight “for now”. However, things did not go as expected for Phantom.
Andre 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— Anton Nell (@AntonNellCrypto) March 6, 2022
However, Cronje seems to have returned to the platform amid the tumultuous times in recent months, both in the broader crypto market and in Fantom. Fantom’s stablecoin FUSD lost support last week and its losses continue to deepen.
The de-pegging of FUSD came after the collapse of Terra’s UST, which made investors more skeptical of stablecoins.
Is Cronje trying to solve Phantom’s stablecoin crisis?
According to the data received, the developer FUSD It appeared to work on Fantom’s FMint protocol, a platform used for The move comes at a time when severe market pressure seems to be losing support for the stablecoin.
According to data from Coinmarketcap, FUSD is currently well below its fixed price of $1 and is trading at $0.6985 at the time of writing.
The fall of FUSD is due to the Terra debacle as well as the Phantom (FTM) stablecoin mechanism. Changes can also be attributed to
To hold assets through FUSD, the protocol has set strict collateral criteria. But he also did not specify the amount of time he would allow to cover the positions.
FUSD will also have a floating interest rate going forward. However, judging by the sudden de-pegging of the token, it seems that traders are not very happy with the decision.
“Father of DeFi” condemns crypto
Cronje’s return to Phantom is quite remarkable considering the developer’s previous comments suggesting that he has largely abandoned the crypto space.
In a blog post he shared in early April, Cronje declared that “crypto is dead” and called for more regulation in this area. The legendary developer also criticized the community’s obsession with wealth creation, which eclipsed the “fundamentals” of crypto.
Cronje also emphasized that he has no intention of returning to the crypto space. The developer’s LinkedIn profile shows that he is now turning to an investment banking platform.
You can check the price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.