FTM gained 13% from intraday lows to $0.3746 in the last 24 hours, outperforming all of the top-100 cryptocurrencies. Github data revealing Cronje is creating code for a Fantom stablecoin platform spurred the token’s rise.
Cronje, who is widely regarded as one of DeFi’s most prolific developers, and main developer Anton Nell unexpectedly quit Fantom in early March. FTM suffered a significant selloff as a result of the change, which the token has struggled to recover from.
Cronje’s return to the stage, however, comes at a difficult time. FUSD, Fantom’s stablecoin, has de-pegged dramatically in the last week and is continuing to lose value.
The depegging of FUSD follows the collapse of Terra’s UST, which has left investors wary about stablecoins.
Is Cronje attempting to resolve the Fantom stablecoin crisis?
The developer looked to be working on Fantom’s FMint technology, which allows users to mint FUSD. The decision comes as the stablecoin looks to have been de-pegged due to severe market pressure.
According to Coinmarketcap, FUSD is currently trading at $0.6972, considerably below its $1 peg.
The value of FUSD appears to have plummeted after Fantom changed their stablecoin method.
To retain positions through FUSD, the protocol set stringent collateralization criteria. It didn’t say how much time it would give to cover jobs.
A dynamic interest rate will also be in the FUSD. However, traders appear to be not happy by the move, as evidenced by the token’s sudden de-pegging.
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