SrdjanPav / iStock.com
Cryptocurrency is digital money generated and tracked through a new technology known as blockchain. Think of the blockchain as a digital collection of accounts that are widely and openly distributed across the internet and designed to be secure against fraud and hacking.
The first cryptocurrency, Bitcoin, was created after the global economic crisis of 2008. At that time, the early inventors and investors of Bitcoin focused on the decentralization of money. The main idea was to create a system of money and transactions beyond the control of governments and their central banks.
Bitcoin transactions took place on a blockchain ledger open to everyone. Without a single source of data, it was believed that the blockchain ledger would provide security and reliability.
The scale problem
However, a significant scalability problem remained: if Bitcoin was to succeed as a useful new form of money, it had to be easy to use for millions of different users and in a wide variety of transactions.
However, the system built to support its use was not designed with this essential scalability in mind. For many users, it was still slow, cumbersome and expensive.
The second age of digital currency has arrived, with fresh money and new networks including Ethereum, Cardano and Fantom. These and other new systems give digital currency key advantages it didn’t have with Bitcoin: speed and scalability.
Founded in 2018 by Dr Ahn Byung Ik and his colleagues working together in Australia, the Fantom organization has since moved its headquarters to South Korea. The system runs on a large matrix of blockchain-powered networks. Each network operates independently, allowing the entire system to be faster and more scalable as new users join the network.
What are ghost coins?
Fantom has its own cryptocurrency, FTM tokens.
The Phantom offer
At its inception, the Fantom organization issued 3.175 billion tokens. This offer is fixed, so there can never be more Fantoms. However, not all authorized tokens are in circulation yet. When the system was launched, 40% of the offer was reserved for investors. An additional 25% was allocated to Advisors and the Founders Team.
Just over 31% of Fantom tokens will be awarded for staking or holding a supply of the tokens in the blockchain system to validate its transactions. This process will continue until 2024, when all available Fantom tokens will be distributed or rewarded.
At the end of January 2022, the Fantom system managed $12 billion in assets, making it the third largest blockchain system in the world after Bitcoin and Ethereum.
Each Fantom app has its own blockchain network. This DeFi, or decentralized finance platform, enables faster execution of “smart contracts,” which are simply transactions executed automatically through a series of conditions and commands on the network.
The system relies on open-source programming code so that developers can easily create trading exchanges, lending applications, marketplaces for non-fungible tokens or other digital assets. Because Fantom uses Solana – the same programming language as Ethereum – an application developer can easily transfer applications developed on the Ethereum blockchain.
And since they speak the same language, Fantom blockchains can communicate and interact with each other.
Is Fantom legit?
With many cryptocurrencies available, the question is often: why does the world need another cryptocurrency?
The Fantom system generates its own digital coin, abbreviated as FTM. The goal is to provide users of these faster blockchain networks with a native medium of exchange. Additionally, each blockchain in the Fantom system may have its own tokens and rules for how those tokens are generated and traded.
The Fantom system has governance rules that determine how the networks operate. No conductor runs the show, although a technical office makes proposals, either continuously or urgently.
The Fantom system uses what is called “on-chain governance”. Those who own FTM have a stake in the system. They can also propose rule changes and vote based on the number of coins they hold.
Fees and market metrics
Fees charged for transactions or to create networks are also denominated in FTM. The purpose of setting fees is not to generate revenue; it is a method that makes any hacking or spamming costly for malicious actors who try to manipulate or crash the system.
Fantom has moved up the charts regarding price and market capitalization.
As of February 21, 2022, the coin was at no. 32 on the authoritative list featured on coinmarketcap.com and had a total market value of around $4.4 billion. The trading volume that day reached $751 million and the value of the coin stood at $1.73.
Good to know
Like other cryptocurrencies, Fantom can be exchanged for Bitcoin, Ethereum, and “fiat currency” like dollars, yen, and euros. It has a floating exchange rate and a dollar-denominated value that changes with supply and demand.
The cryptographic crystal ball
As an investment, Fantom involves both risks and opportunities. It is potentially a next-generation blockchain system and has a chance to rival Bitcoin and Ethereum in terms of value and utility. But there is competition in the field, and the science of crypto is constantly evolving.
Important metrics surrounding cryptocurrency – including market value, trading volume, and price fluctuations – are not predictable in the same way that revenues and profits can be predicted for companies that have listed stocks. in stock exchange.
There are now thousands of different cryptocurrencies, all of which claim to be useful, tradable and valuable. A few may emerge as leaders, but there is no reliable method of knowing which will prevail.
How much will Fantom be worth?
This does not prevent websites specializing in crypto forecasts from making their guesses. PricePrediction had Fantom reaching as high as $12.09 by 2025 and a high of $66.15 by 2030. Wallet Investor pegged Fantom to reach a high of $17.14 over the next five years, and Digitalcoin has Fantom reaching $6.62 in 2027.
Diving into the waters of Fantom crypto requires research and caution and the understanding that the token purchased today may well be worthless in the not-too-distant future.
Information is accurate as of February 23, 2022.
Our in-house research team and on-site financial experts work together to create accurate, unbiased and up-to-date content. We check every stat, quote and fact using trusted primary resources to ensure that the information we provide is correct. You can read more about GOBankingRates processes and standards in our Editorial Policy.