Total value locked in Fantom declines by 21% amid devs’ exit, data shows
According to data from DeFi Llama, as reported by a prominent crypto analyst, Fantom Network’s TVL fell over 21.16% following the exit of developers Andre Cronje and Anton Nell. Andre Cronje, the developer of Yearn.Finance and Keep3r, has announced that he is stopping with fellow software architect Anton Nell, according to a tweet posted by the latter.
Consequently, Fantom’s total value locked (TVL), or the overall value of crypto assets deposited, tanked nearly 21.16%. That of Solidly and Solidex, which was run by Andre Cronje on Fantom, dropped by 44.61% and 45.22%, respectively, in the past 24 hours.
Anton Nell claimed in Sunday’s tweet that a total of 25 decentralized finance apps will be terminated from April 3. Yearn.Finance, Keep3r Network, Solidly and other protocols are among the discontinued projects.
Michael Kong, CEO of Fantom Foundation clarified that this was misinformation: ”Many of you are aware, Anton, who works with Andre, tweeted that they were ‘terminating’ 25 projects. This was misunderstood. They are ‘terminating’ their involvement, but handing over anything they run to the existing teams.”
The price of the YFI token has crashed around 13% since the announcement, but has since pared some losses. The cryptocurrency garnered a lot of attention during the “DeFi summer” of 2020 after a massive rally, but has since sunk into relative obscurity.
Fantom’s total value locked grew by nearly 600% in November 2021 following the announcement of the 370 million Fantom Incentive Program. Following the news, the Fantom protocol’s total value locked (TVL) has shed nearly $3.35 billion since March 3 to stand at a present value of $7.64 billion, according to DeFi Llama.
Rumors of Cronje’s departure began circulating on Twitter on Saturday after he changed his LinkedIn profile to show he no longer worked at Fantom Foundation, Yearn.Finance or Ethereum.
Fantom Foundation responds
The Fantom Foundation quickly addressed the community’s concerns, assuring them that the exit of the developers would have no negative impact on the project’s growth.
Cronje’s contribution to crypto had been enormous, according to the foundation, but Fantom was not an “one-man team,” implying that a single developer’s release should in no way derail the project.
