The Complete Investigation on FTM Token (FANTOM)

1. Executive Summary

Overview of the FTM token and its unique value proposition.

The FTM token is the native utility token of the Fantom blockchain ecosystem. It powers the network, enabling staking, governance, payments, and fees. FTM is used for voting on network changes, and its unique features include flexible voting options and a dynamic staking structure with varying reward rates. It is highly liquid and available on multiple platforms, including Ethereum and Binance Chain.

SOURCES:

https://www.coingecko.com/research/publications/fantom-ftm-token-explained-why-is-it-so-unique

https://www.gemini.com/cryptopedia/fantom-wallet-fantom-crypto-ftm-token

Brief summary of the investment opportunity.

The FTM token, native to the Fantom blockchain ecosystem, offers a unique investment opportunity. It is used for staking, governance, payments, and fees on the network. The token has a dynamic staking structure with varying reward rates, including a 4% annual percentage yield (APY) and up to 12% APY for longer-term staking. Additionally, FTM is available on multiple platforms, including Ethereum and Binance Chain, making it highly liquid. The token's price has experienced fluctuations, but analysts predict a potential rebound if it dips to $0.65. Overall, FTM presents a good investment opportunity for those willing to take calculated risks.

SOURCES:

https://www.binance.com/ar-BH/square/post/5635255182521

https://capital.com/fantom-price-predictions-will-ftm-go-up

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2.  Overview

Mission and Vision: FTM's long-term objectives.

The long-term objectives of the Fantom token (FTM) are to create a high-performance, scalable, and secure smart-contract platform. Key goals include scalability, security, decentralization, interoperability, governance, and incentives. FTM aims to support the development of decentralized applications and digital assets while promoting decentralization and community engagement.

Problem Statement: Challenges or gaps FTM aims to address.

FTM TOKEN aims to address several challenges and gaps in the blockchain space, including scalability, security, and interoperability. It seeks to overcome the limitations of existing blockchain platforms by providing a high-performance, scalable, and secure smart-contract platform.

Solution: How the FTM TOKEN proposes to solve these problems.

The FTM token, specifically Fantom, proposes to solve problems by providing a fast and scalable blockchain platform. It uses a proof-of-stake consensus algorithm and a delegated Byzantine Fault Tolerance (dBFT) mechanism to ensure high transaction speeds and security.

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3. Technology and Product

Technical Architecture: Overview of the blockchain and other technologies used.

Fantom (FTM) is a scalable blockchain platform that uses a proof-of-stake consensus algorithm and a leaderless, permissionless, and decentralized architecture. It operates on a Directed Acyclic Graph (DAG) structure, allowing for asynchronous operations and faster transaction speeds. The Lachesis consensus mechanism ensures deterministic finality and reduced transaction costs, making it suitable for high-performance applications and decentralized services at scale.

SOURCES:

https://link.springer.com/article/10.1007/s00502-009-0656-y 

https://www.coinbureau.com/review/fantom-ftm/ 

Product Offering: Description of the product or service, including its development stage.

Fantom (FTM) is a smart contract platform based on a directed acyclic graph (DAG) that offers decentralized finance (DeFi) services to developers. Launched in 2018, its mainnet, OPERA, was activated in December 2019. Fantom's primary focus is on enhancing transaction speed to under two seconds, addressing issues in smart-contract platforms.

Innovation: How FTM innovates or improves upon existing solutions.

Fantom's innovative approach focuses on enhancing transaction speeds, offering DeFi services, and utilizing a DAG-based smart contract platform. Its modular architecture allows for customizable blockchain networks, ensuring security through a leaderless Proof of Stake protocol. Key features include fMint, fLend, and fTrade, enabling synthetic assets, lending, and decentralized trading.

SOURCES:

https://www.blockchain.com/explorer/assets/ftm

https://fantom.foundation/

Roadmap: Development milestones, past achievements, and future goals.

Fantom's roadmap has focused on addressing blockchain scalability and usability issues through innovative technology. Key achievements include the launch of the Fantom Opera Chain, integration with Binance Chain and Ethereum, and plans for a new StateDB storage system and Fantom Virtual Machine (FVM) to enhance scalability and efficiency.

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4. Market Analysis of FTM

Target Market: Size, demographics, and behavior of the potential market.

Fantom's target market encompasses cryptocurrency enthusiasts, developers, and investors seeking high-performance blockchain solutions focused on scalability, security, and efficiency. The network appeals to a tech-savvy global audience interested in decentralized finance (DeFi) services and innovative blockchain technology.

Competitive Landscape: Analysis of competitors and FTM’s position in the market.

Fantom (FTM) stands out in the competitive DeFi and smart contract landscape due to its unique features like the asynchronous Byzantine fault-tolerant (aBFT) consensus mechanism and the Lachesis Protocol. The Opera mainnet supports Ethereum Virtual Machine (EVM) smart contracts, enhancing compatibility with popular DeFi applications and streamlining smart contract deployment.

Market Trends: Current and anticipated trends that could affect FTM.

Fantom (FTM) market trends are characterized by mid-term holder accumulation, favorable sentiment, and technical indicators. The decrease in FTM supply among traders signals increasing confidence in FTM's prospects. The Relative Strength Index (RSI) indicates strong investor interest, despite being overbought, and historical data shows FTM's price growth in overbought conditions. Analysts predict significant price increases if FTM breaks through key resistance levels, potentially reaching $1.50 or more in the near term.

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5. Team and Advisors

Backgrounds: Experience and expertise of FTM’s founding team and key members.

The Fantom (FTM) token was founded by Dr. Ahn Byung Ik, a South Korean computer scientist, and advisor Matthew Hur. Key members include Michael Kong, CEO and Director, David Richardson, Executive Chairman, Andre Cronje, Core Contributor and Director, and Quan Nguyen, PhD, CTO.

FTM’s Advisory Board: Influence and contribution of the advisors.

The Fantom Foundation benefits from notable advisors like Andre Cronje, the DeFi Architect and Founder of Yearn. Finance, who supports Fantom's multi-chain initiatives, such as the launch of Fantom's bridge to Ethereum, underscoring the project's emphasis on DeFi use cases.

Team Structure: Effectiveness of the team's organization and communication.

The Fantom team's success in managing the project is evident in their strong communication and diverse expertise, which has been instrumental in handling the project's complexities. The team consists of a founder with an IT and Commerce background, a CEO/CIO, a CTO with a Ph.D. in Graph Visualization, a CMO, a Legal Counsel, and a Head of Marketing. This diverse skill set, combined with the guidance of advisors like Andre Cronje, has enabled the project to focus on DeFi use cases and achieve growth in the DeFi space. The team's organization and communication have been key factors in Fantom's success.

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6. Ftm’s Tokenomics and Financials

FTM’s Utility: The purpose and use cases for FTM’s token.

The Fantom blockchain's native cryptocurrency, FTM, has multiple roles and applications within the network. It plays a critical part in securing the network via the Proof-of-Stake system, allowing FTM holders to stake their tokens for rewards and network governance participation. FTM is also used for network fees, such as transactions, smart contract deployment, and network creation, with low fees that help prevent malicious activities. Moreover, FTM holders can buy goods from major retailers on Shopping.io, fostering mainstream crypto adoption. Additionally, FTM is essential to Fantom's ecosystem, supporting dApp development, rewarding validators, and facilitating features like fMint, fSwap, and fLend in the DeFi space. FTM's utility encompasses staking, governance, network fees, trading, minting synthetic assets, and engaging with various DeFi protocols within the Fantom ecosystem.

FTM’s Distribution: Allocation of tokens (e.g., team, advisors, public sale).

FTM token allocation comprises 32.75% for block rewards, 12.00% for advisors/contributors, 6.00% for the strategic reserve, 1.57% for the public sale, 11.69% for private sale II, 25.35% for private sale I, and 3.15% for the seed sale. This strategic distribution guarantees that a range of stakeholders, including the team, advisors, and participants in public sales, receive FTM tokens to bolster the network's advancement and expansion.

Financial Model: Revenue Streams, Cost Structure, and Profitability Projections.

Fantom's financial model includes revenue streams from DeFi strategies, transaction fees, and validator earnings. The foundation owns around 18% of the circulating FTM supply and uses it to buy back tokens. The cost structure includes salaries for over 40 staff members and expenses for marketing and development. Despite recording $50 million in losses, the project is cash flow positive, earning over $10 million annually. The treasury is funded by a portion of transaction fees and other platform revenues, ensuring the project's solvency for the next 30 years.

SOURCES:

https://blockworks.co/news/cronje-says-defi-saved-fantom-we-are-cash-flow-positive

https://weareblox.com/en-eu/fantom

Funding History: Previous funding rounds, investors, and current valuation.

Fantom (FTM) has secured $91.60 million in funding through various rounds, including a public sale of $41.60 million. The project has raised funds through private rounds, seed rounds, and a token generation event (TGE). The current market capitalization of FTM is $1.89 billion, with a fully diluted market capitalization of $1.89 billion.

SOURCES:

https://cryptorank.io/ico/fantom

https://icodrops.com/fantom/

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7. FTM’s Community and Ecosystem

Community Engagement: Size, growth, and engagement levels of the community.

The FTM community engagement is significant, with various strategies implemented by the Fantom Foundation to foster growth and engagement. These include hosting events, maintaining social media channels, and providing updates. The community is actively involved in governance, participating in discussions, and contributing to the network's growth, reflecting a strong and vibrant community.

Partnerships: Strategic alliances and partnerships.

The Fantom Foundation has forged several strategic partnerships to drive growth and adoption of the FTM token:

Partnered with WOO Network to aggregate liquidity for FTM.

Integrated FTM as a payment option on the Travala.com travel booking platform, allowing FTM holders to book travel products worldwide.

Announced a strategic partnership with Google Cloud to launch initiatives that empower developers to build decentralized apps on Fantom.

These partnerships aim to increase the real-world utility and adoption of the FTM token.

SOURCES:

https://woo.org/blog/en/woo-network-teams-up-with-the-fantom-foundation-in-a-strategic-partnership-to-drive-liquidity-to-the-fantom-network

https://blog.fantom.foundation/travala-com-partners-with-fantom/

Network Effects: The project's strategy for achieving and benefiting from network effects.

Fantom strategically leverages network effects to enhance its value and utility. By attracting more users and participants, FTM creates a self-reinforcing cycle that improves its market acceptability, liquidity, and value. The platform's unique architecture, low network fees, and instant finality make it an attractive choice for developers and enterprises, driving adoption and strengthening its network effects.

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8. Risks and Challenges

Market Risks: 

Exposure to market volatility and competitive threats.

FTM tokens are exposed to market volatility, which can result in significant losses. Additionally, Fantom faces competitive threats from other blockchain platforms offering similar services. The token's performance is also influenced by the overall market sentiment and regulatory developments.

FTM Technical Risks: Potential technical hurdles in development or deployment.

Fantom (FTM) faces technical risks due to development and deployment issues, impacting functionality, performance, and security. The FTM price risks a pullback due to a divergence between price and momentum. Technical indicators suggest a 90% drop risk, highlighting a significant technical hurdle. Investors should carefully assess these risks when considering investment strategies.

Regulatory Risks: Legal challenges that could impact the project's viability.

FTM token faces regulatory risks due to the possibility of being classified as a security by regulatory bodies like 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 primarily done by the Fantom Foundation.

SOURCES:

https://en.thebigwhale.io/tokens/fantom

https://www.cryptoeq.io/corereports/fantom-abridged

Other Risks: Any other potential risks not covered above.

FTM token faces regulatory risks due to the possibility of being classified as a security by regulatory bodies like the 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 primarily done by the Fantom Foundation.

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9. FTM’s SWOT Analysis

Fantom (FTM) faces several challenges in its token SWOT analysis.

Strengths include a strong developer community, high transaction success rate, and a robust toolkit.

Weaknesses include a low total value locked (TVL), which could impact liquidity and market activity.

Opportunities include the potential for increased adoption and market growth, particularly in the gaming and NFT sectors.

Threats include market volatility, regulatory risks, and the possibility of a 90% drop in price due to technical indicators.

SOURCES:

https://www.reddit.com/r/FantomFoundation/comments/18n4gi0/swot_analysis_fantom_ftm/

https://www.binance.com/en-NG/square/post/558373

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10.How FTM works with TheStandard.io 

Possible collateral type: 

The Standard protocol allows users to leverage FTM as collateral to secure loans in EUROs and, in the near future, USDs, without any interest charges. This non-custodial system ensures a secure and user-controlled experience.

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11. Conclusion and viability score

Final assessment and Score:

FTM token within the Fantom blockchain ecosystem has significant growth potential. By 2030, it is projected to reach a peak price of $4.59, with minimum and average prices estimated at $3.19 and $3.89, respectively. Fantom's innovative architecture, staking incentives, and DeFi suite make it an attractive choice for developers and users, offering a promising long-term investment option.

SOURCES:

https://watcher.guru/news/fantom-price-prediction 

https://www.gemini.com/cryptopedia/fantom-wallet-fantom-crypto-ftm-token