If you bought the FTM token earlier this year, you would be smiling at your crypto portfolio right now.
The FTM token has performed admirably in the past few months, soaring above approx. $0.2 in July 2021 to $2.45 on October 8 of the same year.
Impressive! this is well over a 200% increase.
FTM is the native token of the Fantom blockchain ecosystem.
But what is the bubble behind this token, you may ask? That is what I intend to tell you in this post.
Post Summary
This is what I will cover:
- What is Fantom?
- Fantom’s Features
- The FTM Token Explained
- Top Exchanges To Buy FTM
- Best 5 Wallets To Store Your FTM Tokens
- Is FTM A Good Investment?
- Conclusion
I’ve included a jump link so you can skip to the section that indulges you.
Let’s dive in!
1. What Is Fantom?
Fantom is a crypto project that achieves decentralization, scalability and security through a consensus mechanism known as Lachesis.
It is not a blockchain per se, but instead a Directed Acyclic Graph (DAG).
DAG is a distributed ledger technology that enables transactions to run independently.
Fantom offers the following services:
- An open-source platform for the creation and hosting of smart contracts.
- Blockchain-based solutions to enterprises related to healthcare, education, CBDC, supply chain and so on.
- Focuses on the DeFi sector, allowing users to stake, mint and trade digital assets within its network.
The project launched its mainnet in December 2019.
It was originally founded by a Korean guy, Ahn Byung IK – he is a computer scientist with a prestigious business career.
However, Ahn is no longer associated with Fantom.
The current Fantom CEO is Micheal Kong, a pioneer contributor to the development of Fantom.
Nonetheless, yearn.finance founder, Andre Cronje is the most enthralling name behind this project; he is Fantom’s Defi Architect.
Alright, now that you’re tuned in, let’s look at what makes Fantom special.
2. Fantom’s Features
They include:
A. Consensus Mechanism
Fantom’s goal is to develop a technology that addresses blockchain’s trilemma.
And it boasts of achieving this through Lachesis.
Lachesis is an advanced aBFT proof of stake consensus mechanism.
It allows transactions to be processed asynchronously.
Furthermore, it ensures that nodes in the network confirm blocks without depending on any timing assumptions.
To explain this better:
Bitcoin transactions, for instance, require up to 6 confirmations with a block time of about 10 minutes.
However, transactions on the Fantom network achieve finality; the transaction takes 1-2 seconds and does not require block confirmation.
B. Fantom’s Defi
Users can access a variety of DeFi features through Fantom, including:
- fMINT
- fSWAP
- fUNI
To explain further:
You can lock up synthetic versions of FTM or staked FTM as collateral to mint and trade synthetic versions of various assets, including, fBNB, fBTC, fETH, fOIL, etc.
The best part is you earn a reward in WFTM when you lock up your funds. WFTM is the synthetic version of FTM (more about FTM later).
Also, Ethereum DeFi apps, such as Sushiswap, Curve, and others, can be accessed through the fantom’s network.
But to access them, you will have to configure your Metamask to support the fantom network.
C. Fanthom Opera
This is Fantom’s mainnet. It offers a secure and fast environment where anyone can build DApps.
Fantom Opera is compatible with EVM and Cosmos SDK.
Furthermore, it supports all EVM programming languages.
D. Staking on Fantom
Fantom uses a set of Validators and Delegators who stake the FTM coin to secure its network.
However, the Fantom network can be manipulated if one-third of the network’s transactions are controlled by validators.
You see, this seems odd, but Fantom has an excellent staking model that would prevent this from happening.
Currently, there are over 50 validators who run a Fantom node.
To become a validator you must stake 1 million FTM tokens. This is huge!
On the other hand, you become an eligible delegator if you stake a minimum of 1 FTM.
Furthermore, validators cannot stake more than 50 million of their FTM on their node.
In addition to this, a small network fee is charged for each transaction, making it expensive and near impossible for an attacker to control the network.
It’s worth noting, though, that Fantom experienced a brief outage, which caused the network to stop validating new block confirmations.
According to the team, it happened because ” two validators are big enough to represent more than 1/3W of stake”.
When you stake FTM on Fantom’s network, you receive rewards in SFTM tokens.
And unstaking your FTM takes 7 days.
F. Governance
Fantom debuted its on-chain governance system at the start of 2021.
This allows FTM holders to contribute to the development of the network by creating and voting for proposals for changes.
Each proposal submission costs 100 FTM and they will be burned during the voting period.
Furthermore, one FTM equals one vote, and each voter will rank their support for a proposal on a scale of 1- 4.
At the end of the voting period, a proposal is declared successful if 66% of participants vote in its favour.
G. Fantom Bridge
Multichain is a cross-chain bridge offered by Fantom.
It allows anyone to port other blockchain assets, including Ethereum, BSC, Fantom, Fusion, Heco, Polygon, XAR, xDAI, into Fanthom Opera.
The best part of this bridge is that it makes it possible for different versions of FTM tokens to be used within the Fanthom mainnet.
In the next section, we will discuss the FTM token in detail. Keep reading!
3. The FTM Token Explained
FTM is the native token of the Fantom network.
Gladly, this token has tangible use cases which differentiate it from some of the shitcoin in the market.
These use cases include:
- Staking – FTM is used to secure the Fantom’s network
- Governance -It gives the community the right to make decisions on the network’s improvement
- Payment: Transaction fees on the Fantom network are paid for using the FTM token
- Fantom’s Defi: It is used as collateral to mint synthetic assets on Fantom’s finance
You earn additional FTM tokens when you stake or lock up your FTM on Fantom. That’s cool.
Currently, the FTM token is integrated into 3 different blockchains:
- Opera FTM – built on top of Fantom’s mainnet, Opera.
- ERC-20 token – Ethereum network
- BEP-2 token – Binance Smartchain
It is worth noting that “Opera FTM” is the only version of the FTM token that can be used within the Fantom ecosystem.
But thanks to “Multichain”; if you have FTM (ERC-20 or BEP-2) you can easily convert them to Opera FTM and use it on Fantom.
Fantom Token Allocation
FTM has a maximum supply of 3.175 billion coins, all of which were minted at the start of the project.
The tokens were distributed based on the information in the table below.
| Recipients | Token Amount |
| Public and Private Sale investors | 40% |
| Advisors | 15% |
| Team | 10% |
| Strategic reserve | 3.6% |
| Staking rewards | 31.4% |
According to the information on Coinmarketcap, Oct 2021, 2.55 billion FTM are already in circulation.
The remaining supply is still reserved for staking rewards and will be fully distributed in the future, according to the daily staking reward rate.
Are you anxious to get your hands on the FTM token? Let’s look at some of the best places to do so below.
4. Top Exchanges To Buy FTM Token
The list includes:
1. Binance
Binance is the largest Cryptocurrency Exchange, established in 2017 by Changpeng Zhao.
It supports 500 cryptocurrency trading pairs, as well as Coinmarketcap’s top 100 cryptocurrencies.
Binance is the best place to buy FTM.
The rationale for this is that it provides the most liquidity for FTM trade pairs and supports all three FTM blockchain types.
The following are the FTM trading pairs on Binance:
- FTM/USDT
- FTM/BUSD
- FTM/BNB
- FTM/BTC
- FTM/ETH
2. Crypto.com
Kris Marszalek founded Crypto.com in 2017, and the company’s headquarter is in Hong Kong.
It is a broker and trading exchange that allows users to carry out different transactions with cryptocurrencies.
This is a highly reputable exchange and you can trade the FTM/USDT pair on it.
3. Kucoin
Kucoin is a Singapore-based cryptocurrency exchange that was created in 2017.
It offers services like Spot/Margin/futures Trading, ETFs, Crypto Lending among others.
Next to Binance, Kucoin has the best liquidity and trade volume for FTM.
You can trade these FTM pairs on Kucoin:
- FTM/BTC
- FTM/ETH
- FTM/USDT
4. OKEx
Star Xu established OKEx in 2014. Its headquarters are in Malta.
The exchange is one of the top exchanges with considerable liquidity in the crypto space.
It boasts of having a wealth of trading features and quality customer support.
OKEx allows you to trade FTM against USDT.
5. Gate.io
Gate.io is a trading platform that was founded in 2013 and is run by Gate Tech. Inc.
Users can trade spots and futures seamlessly on the exchange.
And it supports up to 500 coins including BTC, DAI, ETH, etc.
On this platform, you can trade FTM against USDT and ETH with decent liquidity.
What I have given you above are the top centralized exchanges to buy/sell FTM.
If you would prefer a decentralized exchange, then, you can visit the exchanges below.
- PancakeSwap, Sushiswap, Uniswap, Apeswap, 1inch, 0x- Protocol
Now you have bought your FTM tokens, where would you store them securely?
Don’t worry, I covered this in the section below.👇
5. Best 5 Wallets To Store Your FTM Tokens
Here you have them.
1. Fantom Wallet (fWallet)
fWallet is the native Fantom wallet.
It is integrated into Fantom’s Opera mainnet, but you can also download it on your phone or use a web browser to access it.
fWallet gives you the best lucrative opportunities on your FTM tokens.
This is because Fantom’s staking, governance, and Defi features, etc., can be accessed through the fWallet.
2. Ledger
Ledger is hardware produced by French companies.
It’s a good idea if you’re buying a lot of FTM tokens.
Ledger has a super encryption technique to keep your fund safe and secure.
However, unlike the other wallets in this review, the Ledger costs around $50.
Products of ledger include; Ledger Nano x, Ledger Blue, Ledger Nano s.
3. MetaMask
MetaMask is an Ethereum-based cryptocurrency wallet (just like MEW).
It’s a browser extension that connects users to the Ethereum blockchain directly.
You can store many versions of the FTM tokens on it, but you will need to configure it.
It also lets you connect Ethereum DeFi apps to the Fantom network.
4. Trust Wallet
Trust wallet is a non-custodial multi-crypto mobile wallet.
It has an in-built DEX and a Web 3 browser that allows users to interact with different blockchain’s Dapps.
Also, this wallet has a user interface that is simple to use. It supports staking and is also open-source.
5. MathWallet
This is a non-custodial multi-crypto.
It has different packages including, a Mobile app, Web wallet, Browser extension and Hardware wallet.
The fact that this wallet supports over 30 distinct blockchains is noteworthy.
Also, using the MathWallet, you can connect to different blockchain’s DApps.
Bottom Line:
You can store your FTM tokens on any wallet that supports ETH, BSC, and the Fantom Opera Network.
This, however, is dependent on the FTM token version you want to store.
Nevertheless, if you want to use Fantom’s DeFi, governance, and staking features, the fWallet is the way to go.
Should you hold FTM for the long term? This and more are what I discussed in the next section.
6. Is FTM A Good Investment?
As I mentioned at the start of this article, the FTM token is performing incredibly well in the market.
Despite its massive supply, it manages to break beyond $2, reaching an all-time high of $2.45 on October 8, 2021.
As of the time of this article, FTM is valued at $1.98.
Indeed, with this price value, it feels safe to say that FTM is still building up its bullish momentum in the crypto space.
Gladly, FTM has multiple exchange support and it has reached a marketcap of $5,038,456,660. This speaks volumes!
But it isn’t surprising, given the project’s track record of success.
Companies in nations such as Pakistan, Afghanistan and Tajikistan have partnered with Fantom to employ its enterprise solutions.
Not only that, but Fantom is partnering with blockchain-based industries such as Ethereum Classic Lab, Travala, Graph, Ankr, Chainlink and a slew of others.
And oh! Alameda Research, a crypto trading firm, has invested $35 million into Fantom. That’s pretty cool, huh? 😎
The fact that Fantom has a Defi space is another reason I believe the FTM token will go parabolic in price.
And to think that Ethereum based DApps have been ported into Fantom makes it more interesting.
Moreover, it has good tokenomics and is led by Andre Cronje, a famous Defi architect in the crypto space.
Given all of this, I can say that the FTM coin is certainly good for a long hodl.
However, the rule of thumb for cryptocurrency investment remains that you DYOR before investing.
Let’s meet at the next section!
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7. Conclusion
FTM is backed by a strong project that includes real-world use cases and cutting-edge problem-solving technology.
It has done well in terms of price movement. Likewise, its current marketcap indicates that it has received a good level of adoption.
This brings us to the end of this article.
What do you think about Fantom?
Are you considering adding the FTM token to your portfolio?
How far do you think the price of FTM will go before the end of 2022?
Let me have your opinion in the comment box.
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