What Is Fantom (FTM) Crypto? What To Know Before Buying
Cryptocurrency is digital money generated and tracked through a new technology known as a blockchain. Think of blockchain as a digital set of accounts that are widely and openly distributed across the Internet and designed to be secure from fraud and hacking.
The first cryptocurrency, Bitcoin, was created after the global economic meltdown of 2008. At that time, the emphasis of Bitcoin’s early inventors and investors was on the decentralization of money. The main idea was to create a system of money and transactions that lay outside the control of governments and their central banks.
Bitcoin transactions took place on a blockchain ledger that was open to everyone. Without a single data source, it was believed that the blockchain ledger would provide security and reliability.
The Problem of Scale
However, an important scalability problem remained: If Bitcoin was to succeed as a useful new form of money, it had to be easy to use for millions of different users and in a wide variety of transactions.
However, the system built to support its use was not designed with this essential scalability in mind. For many users, it remained slow, cumbersome and expensive.
The Fantom Innovation
The second age of digital currency has arrived, with new money and new networks, including Ethereum, Cardano and Fantom. These and other new systems lend digital currency essential advantages it didn’t have with Bitcoin: speed and scalability.
Established in 2018 by Dr. Ahn Byung Ik and colleagues working together in Australia, the Fantom organization has since moved its headquarters to South Korea. The system runs on an extensive matrix of blockchain-powered networks. Each network operates independently, allowing the entire system greater speed and scalability as new users join.
What Are Fantom Coins?
Fantom has its own cryptocurrency, FTM tokens.
The Fantom Supply
Upon its founding, the Fantom organization issued 3.175 billion tokens. This supply is fixed, so there can never be more Fantom. However, not all of the tokens authorized are yet in circulation. When the system was launched, 40% of the supply was set aside for investors. An additional 25% was allocated for advisors and the team of founders.
A little over 31% of Fantom tokens will be awarded for staking, or holding a supply of the tokens in the blockchain system to validate its transactions. This process will continue until 2024 when all available Fantom tokens will be distributed or rewarded.
As of late January 2022, the Fantom system was handling $12 billion of assets, making it the world’s third-largest blockchain system after Bitcoin and Ethereum.
The Fantom Blockchains
Each Fantom application has its own blockchain network. This DeFi, or decentralized finance platform, makes possible faster execution of “smart contracts,” which are simply transactions executed automatically through a series of conditions and commands on the network.
The system relies on open source programming code so developers can easily build trading exchanges, lending apps, marketplaces for non-fungible tokens or other digital assets. Because Fantom uses Solana — the same programming language as Ethereum — an app developer can easily port in apps developed on the Ethereum blockchain.
And as they speak the same language, the Fantom blockchains can communicate with and interact with each other.
Is Fantom Legitimate?
With many cryptocurrencies available, the question is often: Why does the world need another cryptocurrency?
The Fantom system generates its own digital coin, abbreviated to FTM. The purpose is to lend users of these speedier blockchain networks a native medium of exchange. Further, each blockchain on the Fantom system can have its own tokens and rules on how these tokens are generated and traded.
The Fantom system has governance rules which determine how the networks function. No leader is directing the show, although a technical board makes proposals, either on an ongoing or emergency basis.
The Fantom system uses what is known as “on-chain governance.” Those who hold FTM have a stake in the system. They can also propose rule changes and cast votes according to how many coins they hold.
Fees and Market Metrics
The fees charged for transactions or to create networks are also denominated in FTM. The point of setting fees is not to generate income; it’s a method of making any hacking or spam expensive for malicious actors attempting to manipulate or crash the system.
Fantom has been moving up the charts regarding price and market cap.
As of February 21, 2022, the coin stood at No. 32 on the authoritative list presented at coinmarketcap.com and had a total market value of about $4.4 billion. Trading volume on that day reached $751 million, and the coin’s value stood at $1.73.
Good To Know
Like other crypto money, Fantom can be exchanged for Bitcoin, Ethereum and “fiat currency” such as dollars, yen and euros. It has a floating exchange rate and dollar-denominated value that shifts with supply and demand.
The Crypto Crystal Ball
As an investment, Fantom carries both risk and opportunity. It is potentially a leading next-generation blockchain system and has a chance to rival Bitcoin and Ethereum in value and utility. But there’s competition in the field, and the science of crypto is constantly evolving.
The important metrics surrounding cryptocurrency — including market value, trading volume and price fluctuations — are not predictable in the same way that revenue and earnings may be forecast for companies that have publicly traded shares.
There are now thousands of different cryptocurrencies in existence, all clamoring to be useful, tradable and valuable. A few may emerge as leaders, but there’s no reliable method to know which will prevail.
How Much Will Fantom Be Worth?
That doesn’t prevent websites specializing in crypto forecasting from making their guesses. PricePrediction had Fantom reaching up to $12.09 by 2025 and a maximum of $66.15 by 2030. Wallet Investor pegged Fantom to attain a max of $17.14 over the next five years, and Digitalcoin has Fantom reaching as high as $6.62 in 2027.
Taking a dip into the Fantom crypto waters requires some research and caution and the understanding that the token bought today could well be worthless in the not too distant future.
This article was republished on April 26, 2022. Information is accurate as of April 5, 2022.
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- IBM. "What Are Smart Contracts on Blockchain?"
- Pontem. 2021. "A Deep Dive Into the Fantom Ecosystem: How It Works + the 7 Biggest Projects."
- CoinMarketCap. "CoinMarketCap: Cryptocurrency Prices, Charts and Market Capitalizations."
- FTM Price Forecast. "Fantom Price Prediction 2022, 2025, 2030."
- Walletinvestor. "Fantom Price Prediction, Fantom Forecast by days: 2027."
- Currency.com. 2022. "Fantom Price Prediction: Is FTM About To Surge?"