The fall of Fantom [FTM]: the result of negative publicity or hack?

The fallout from Terra’s demise continues to send shockwaves through the crypto ecosystem, with altcoins attempting to rebound from the May Crash.

The majority of cryptocurrencies have succeeded to save themselves, but Fantom has entirely failed.

On the 14th of May, the coin tanked, rendering any previous attempts to recover invalid.

Massive hack-negative publicity?

One of the top ten protocols on the chain, SpiritSwap, a decentralized exchange, was the subject of a massive hack, with the protocol’s domain being stolen owing to a GoDaddy exploit.

The hacker duplicated SpiritSwap’s codebase and altered the swap parameters in the process. The hacker was able to get all of the swaps directly into his wallet as a result of this.

However, before the exploiter could carry out their plan, the DeFi protocol detected it and promptly took down the site, telling customers not to make additional trades because roughly $18,000 had already been lost.

Spiritiswap will migrate to a new domain and re-enable router swaps if the domain is not brought under control, according to the DEX team.

However, as a result of the negative publicity, Fantom has lost 45 percent of its value and is currently 31.57 percent below its high point of 13 May.

As a result, Fantom is falling farther into oversold territory, with the DeFi chain losing over $2 billion in only ten days.

FTM was trading at $0.43 before being pulled down by developments in its ecosystem after climbing the charts by over 45 percent at its high.

Even the most troubled currency after LUNA, stablecoin UST, is now performing better than Fantom.

Furthermore, investors sold 53 million FTM worth $15.9 million on 13 May out of fear and the hope of cashing out at FTM’s peak, while the aggregate transaction on-chain reached 200 million FTM, the most the Fantom network had seen since September 2021.

Fantom, fortunately, still has over 88k investors.

However, if the altcoin does not rebound soon and continues to decline on the charts, this selling may intensify, and the network may see investors depart the market.

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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing