What happened to Fantom?

Fantom network finds itself in a precarious position after an unfortunate exploit led to the loss of millions of dollars in assets. As covered by numerous publications, a platform on Fantom network was victim to a hack that lost something of the tune of $14m in April.

This recent exploit was one too many, in a network that also experienced a hack in the previous month. As covered by The Motley Fool;

News emerged on April 28 that a hacker had stolen roughly $13.4 million from the Deus Finance trading application that runs on Fantom's blockchain network, following up a $3 million theft that occurred in March.

This unfortunate event spooked many Fantom whales who have gone on a dumping spree. What followed was the predictable crash in the price to the 70 cents range.

Fantom is pretty much like Ethereum but pride's itself in offering faster transaction speed at relatively low cost. \while claiming to be in competition with Ethereum, I'd say it is in the same league with Matic and other top layer scalability solutions to Ethereum's malaise.

Fantom briefly dropped out of the top 50 assets but has rallied in the past couple of hours. |Speculators believe that the asse may not yet be out of the gutters, with 50-60 cents range being the probable bottom.

The Outcome

5The story is that after the exploit in March that led to the loss of around $1m from a different finance application on Fantom was already on the minds of investors. This event that took place in April was just the straw that broke the camel's back.

Questions about whether Fantom is safe or not have come into the conversation. However, as someone that has experienced loss of assets in Binance Smart Chain, I think Fantom is as safe or unsafe as any other Ethereum fork.

The conversations might be surrounding the hack and many analysts may try to paint the dump that way. However, the reality is that they're all spooked because Fantom is the new guy.

Fantom is a project that only came into existence in 2018 and it has grown rapidly in a short period of time. It has subsequently established itself in the top 100 crypto rank by market cap and will most likely be there for a while.

The questions about Fantom's safety are somewhat unfounded, in my opinion. Deus Finance's loss is unacceptable and quite sad but to me, the point of failure isn't the network, but the project that got exploited.

This event with Fantom reminds me of a similar hack that happened to Thorchain last year. Some time in 2021, a hacker was trying to teach the devs a life lesson or something and $8 million was also lost in the process.

Rune, just like Fantom, was subject to heavy dumping due to the unfortunate event. These sort of events also highlight the fickle nature of crypto investing as a whole.

In any case, the Fantom community seems to have dealt with the initial shock and steadied the ship. I'm going to continue observing proceedings to see if there's any opportunity for me to buy some to hold in the way I'm holding Matic.

Anyway, we're actually spoiled on Hive because of how safu our funds are. With multiple layers of security and active devs that constantly create tools, projects that run on the blockchain are most likely in the safest space in this perilous crypto industry.

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Sources

• https://www.fool.com/investing/2022/04/30/why-fantoms-cryptocurrency-is-crashing-today/
• https://news.bitcoin.com/biggest-movers-ftm-down-12-to-start-the-weekend-as-atom-hits-8-month-low/
• https://economictimes.indiatimes.com/markets/cryptocurrency/fantom-drops-22-after-key-personnel-exit/articleshow/90054403.cms
• https://www.analyticsinsight.net/heres-why-fantom-price-drop-whales-joining-bitgert/

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