Fantom

price
change

Discover Fantom's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Fantom?

Fantom (FTM) is a highly scalable, open-source, and decentralized Layer-1 smart contract platform. It is designed to be compatible with the Ethereum Virtual Machine (EVM) but with key differences. Fantom uses the aBFT Lachesis Protocol, which maximizes speed while ensuring security, allowing transactions to happen quickly with minimal congestion. The platform is known for its fast finality, low fees, and high bandwidth, making it suitable for decentralized finance (DeFi) applications, blockchain games, and the Internet of Things (IoT).

How is Fantom used?

Fantom (FTM) is used for several purposes within the Fantom ecosystem:

  1. Staking Rewards: FTM tokens are used to issue staking rewards on the network. Validators and stakers lock up their FTM tokens to secure the network and receive rewards in return.

  2. Transaction Fees: FTM is used to pay transaction fees on the network, ensuring that transactions are executed efficiently and securely.

  3. Governance: FTM tokens are used for on-chain governance, allowing stakeholders to vote on network-related decisions and propose changes to the ecosystem.

  1. Network Security: The Proof-of-Stake (PoS) consensus mechanism, called Lachesis, relies on FTM tokens to secure the network. Validators need to stake a minimum of 3,175,000 FTM tokens to participate in the network.

  2. DeFi Applications: FTM tokens can be used as collateral to mint sFTM, which can be used in Fantom’s DeFi applications such as lending, borrowing, and trading.

  3. Smart Contracts: FTM tokens are used to set up and execute smart contracts on the Fantom network, which supports multiple decentralized applications (dApps).

Overall, the FTM token plays a central role in maintaining the integrity, security, and functionality of the Fantom ecosystem.

How do I store Fantom?

To store Fantom (FTM) tokens, you have several options:

  1. Fantom Wallet (fWallet): This is the official wallet for the Fantom network. It allows you to create a new wallet or import an existing one, manage multiple wallets, send and receive FTM tokens, stake tokens, and participate in governance proposals. You can access it through a Progressive Web App (PWA) and set up a strong password to secure your wallet.

  2. Ledger Hardware Wallet: Ledger offers advanced encryption and security features to protect your FTM tokens. You can use the Ledger Nano X, which supports staking and can be integrated with MetaMask for access to various decentralized apps (dApps). Ledger also allows you to recover funds via a mnemonic seed phrase if your wallet is lost or compromised.

  3. MetaMask: You can add the Fantom network to MetaMask to interact with the Fantom ecosystem. This allows you to engage with hundreds of dApps and manage your FTM tokens. Ensure you follow the steps to configure MetaMask correctly.

  1. Trust Wallet: This mobile wallet, owned by Binance, supports the Fantom mainnet and allows you to store, send, and receive FTM tokens. It is available for both Android and iOS devices.

  2. Other Options: You can also use other wallets that support FTM, such as MyEtherWallet, which offers a user-friendly interface for managing your tokens.

Regardless of the wallet you choose, make sure to follow best practices for securing your wallet, such as storing your mnemonic phrase or private keys safely and using strong passwords.

How to buy Fantom?

To buy Fantom (FTM) tokens, follow these steps:

  1. Choose an Exchange: Select a reliable cryptocurrency exchange that supports Fantom, such as Binance, KuCoin, Kraken, or Uphold. Each exchange offers different payment methods and fees, so compare them to find the best option for you.

  2. Create an Account: Register on the chosen exchange's website or mobile app. You will need to provide your email address, mobile number, and other personal details. Verify your account by following the exchange's instructions, which may include identity verification and setting up two-factor authentication.

  3. Add a Payment Method: Link a payment method to your account, such as a credit or debit card, bank account, or third-party payment processor. The available payment methods vary by exchange and region.

  1. Buy Fantom: Navigate to the exchange's Fantom (FTM) page and select the amount you want to purchase. You can buy FTM directly with fiat currency or first purchase a stablecoin like USDT and then exchange it for FTM. Confirm your order and wait for the transaction to complete.

  2. Store Your FTM: Once you have bought your FTM, you can store it in your exchange account or transfer it to a personal crypto wallet like Trust Wallet or Metamask for added security and flexibility.

Remember to always follow the specific instructions for your chosen exchange and be aware of any fees associated with your transactions. Additionally, consider the risks involved with investing in cryptocurrencies and ensure you understand the market before making a purchase.

Discover
Fantom
We give you the tools to invest your time and money in 1000+ tokens.
Subscribe

History of Fantom

Fantom (FTM) is a blockchain platform that was founded in 2018 by Dr. Ahn Byung Ik, a South Korean computer scientist. Before founding Fantom, Ahn served as president of the Korea Foodtech Association. The platform was designed to solve the scalability issues of traditional blockchains, focusing on high-performance, scalability, and security for smart-contract applications.

Fantom's infrastructure is built on a unique consensus mechanism called Lachesis, which employs an asynchronous Byzantine fault-tolerant (aBFT) approach. This mechanism allows for high transaction speeds without compromising decentralization or security. The platform also uses a Proof of Stake (PoS) mechanism where validators must stake FTM coins as collateral to participate in the validation process.

The Fantom ecosystem consists of various components, including the development team, the community, applications, validators, partners, and the FTM token. The development team is responsible for platform development, while the community contributes to its growth and adoption. Validators stake FTM tokens to enhance network security, and partnerships are formed to promote interoperability and develop new applications.

The FTM token serves as the native cryptocurrency on the platform and is used for transaction fees, rewarding validators, and as a means of exchange. It is available on major cryptocurrency exchanges and can be used to generate passive income when staked within the Fantom PoS network.

Discover
Fantom
We give you the tools to invest your time and money in 1000+ tokens.
Subscribe

How Fantom works

Fantom is a decentralized, permissionless, open-source smart contract platform designed for developing and deploying decentralized applications (dApps) and digital assets. It operates on a unique consensus mechanism called Lachesis, which is a leaderless Proof-of-Stake (PoS) system that employs an Asynchronous Byzantine Fault Tolerance (aBFT) protocol. This mechanism ensures that the network can reach consensus even if some nodes behave maliciously, and it does not require all nodes to agree simultaneously.

Key Components
  1. Lachesis Consensus Mechanism:

    • Leaderless: The network relies on a system of nodes rather than a single leader.
    • Asynchronous Byzantine Fault Tolerance (aBFT): Nodes can reach consensus even if some nodes behave maliciously, and it does not require all nodes to agree simultaneously.
  2. Fantom Opera Mainnet:

    • Ethereum Virtual Machine (EVM) Compatibility: Supports full smart contract functionality via Solidity.
    • Self-Contained: The performance of one area's traffic congestion has no impact on other areas of the ecosystem.
  3. FTM Token:

  • Native Token: Used for several purposes such as paying for transaction fees, staking to secure the network, and as a governance tool.
  • Staking: Validators need to stake a minimum of 500,000 FTM tokens to secure the network. Stakers can also delegate their tokens to network validators.
  • Governance: One FTM token equals one vote in on-chain governance, where stakeholders can propose and vote on modifications and improvements.
  1. Staking and Rewards:

    • Minimum Stake: 1 FTM token can be staked.
    • Validator Nodes: At least 3,175,000 FTM tokens are required to operate a validator node.
    • Reward Structure: Users can stake their FTM at-will with a validator node for a 4% annual percentage yield (APY) staking reward. Users can also lock up FTM for a predetermined time to secure higher reward rates of up to 12% APY.
  2. DeFi Suite:

    • Liquid Staking: Stakers can mint sFTM at a 1:1 ratio to their staked FTM, which can be used as collateral in Fantom Finance.
    • Fantom Finance: Offers various DeFi applications, including fUSD (a stablecoin pegged to the U.S. dollar), fSwap (a synthetic asset decentralized trading platform), and fLend (a liquidity pool for lending and borrowing).
How to Buy and Sell Fantom
  • Buying Fantom: FTM is available on major cryptocurrency exchanges. Users need to set up a crypto account, connect a crypto wallet, and place a buy order.
  • Selling Fantom: Users can sell FTM for fiat currency or trade it for another cryptocurrency. They need to decide on a trading pair, find the best price, and execute the trade.
Key Features
  • High Scalability: Fantom's Lachesis consensus mechanism allows for fast transaction finality, making it suitable for high-traffic applications.
  • Low Fees: Transaction fees are low to prevent spam and ensure the network's security.
  • On-Chain Governance: FTM is used for governance activities, ensuring that stakeholders have a say in network decisions.

Overall, Fantom's unique consensus mechanism, scalability, and DeFi suite make it an attractive platform for developers and users alike.

Discover
Fantom
We give you the tools to invest your time and money in 1000+ tokens.
Subscribe

Fantom's strengths

Fantom (FTM) has several strengths that make it a promising blockchain platform:

  • High Transaction Speed: Fantom uses the Lachesis consensus mechanism, which allows it to process up to 300,000 transactions per second, making it highly scalable and efficient.
  • Significant Scalability: Fantom's unique consensus mechanism and modular architecture enable it to handle a large volume of transactions without compromising decentralization or security.
  • Interoperability: Fantom is designed to be interoperable with other blockchain platforms, allowing for seamless interactions and the use of smart contracts from different platforms.
  • Energy Efficiency: Fantom's consensus mechanism is energy-efficient, reducing the environmental impact of its operations.
  • Modular Architecture: Fantom's modular design allows for various applications, including financial services, supply chain management, gaming, and more, making it a versatile platform.

These strengths position Fantom as a reliable and efficient blockchain platform for decentralized applications and smart contracts.

Fantom's risks

Fantom (FTM) faces several risks that could impact its value and adoption.

Regulatory Risks

One significant risk is the possibility of being classified as a security by regulatory bodies such as the Securities and Exchange Commission (SEC). This classification could lead to legal and financial implications for the project and its stakeholders. The SEC's Howey Test, which determines whether an investment contract is a security, might apply to Fantom due to its development and maintenance being primarily done by the Fantom Foundation, similar to other Layer-1 platforms like Cardano and Polygon.

Market Risks

Fantom's market performance is also a concern. Technical analysis suggests that the token is at risk of a significant drop, with on-chain metrics indicating a declining Total Value Locked (TVL) and market domination. This could lead to a potential 90% drop in value.

Manipulation Risks

Another risk is the potential for price manipulation. InvestorsObserver's risk gauge ranks Fantom as a moderate risk investment, indicating that the coin's price can be influenced by limited trading activity. This means that a relatively small amount of money could shift the price significantly, making it vulnerable to market manipulation.

Overall Risks

In summary, Fantom faces a combination of regulatory, market, and manipulation risks that could impact its value and adoption. These risks highlight the need for caution and careful analysis for investors considering Fantom as an investment opportunity.

Discover
Fantom
We give you the tools to invest your time and money in 1000+ tokens.
Subscribe

Did Fantom raise funds?

Discover
Fantom
We give you the tools to invest your time and money in 1000+ tokens.
Subscribe

Fantom’s team

  • Ahn Byung Ik: Founder of Fantom.
  • Michael Kong: CEO/Director, experienced in creating Ethereum-based smart contracts.
  • Andre Cronje: Core Contributor/Director, founder of Yearn Finance, and a prominent advisor to the Fantom team.
  • David Richardson: Executive Chairman.
  • Quan Nguyen, PhD: CTO.
  • Joseph Epstein: Chief Marketing Executive.
  • Bernhard Scholz: Chief Research Officer.
  • Fred Pucci: Team member.

Whalee AI

The fundamental analysis assistant for crypto value investors.

Fantom NEWS REPORT

Latest news

Want an analysis of Fantom? Tell us on discord.

Help us improve!
Tell us what you think of this page and which features you would like to see next.
OPEN FORM