Why is Fantom so Underpriced?

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avatar of @kirktan2
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a year ago - 2 minutes read

Some say Fantom doesn't scale well, but don't all chains scale poorly on their L1? Fantom seems to scale decently so far given its high usage. Here, I explore some potential issues.

Andre Cronje

While it is true that Andre has officially stepped away from all crypto and DeFi, he has however, put out the following clarifying statement:

“Although I’ve made the decision to move away from crypto and DeFi, the Fantom team has been nothing but honorable throughout my engagement with them. I believe they are on the right technology path, and I have no doubts that they will continue to succeed.”

Bridge Issues

Remember this article:


Here’s the transaction in question:


This is FUD. The truth is that Fantom guys use 0x431e81 account to reblance the Multichain bridge's fantom liquidity. In order to give people the opportunity to bridge from ETH to Fantom, FTM needs to be locked on the bridge on Fantom. Due to low bridge liquidity, the team (apparently) sent lots of FTM from FTM to ETH, then to Binance, then back. Here are the steps:

  1. Deposit FTM-erc20 to Binance,

  2. Withdraw native FTM and deposit to Bridge.


  1. Repeat steps.

RPC Issues

This is a more valid argument against Fantom. Scalability for FTM seems to be a myth due to it having only one RPC, which gets overloaded every time there is a run. I never had to wait more than a few seconds to get included after actually getting my tx through. However, I've tried developing on it and there are times that no rpc works. As a general rule of thumb, I find that most EVM-ish chains fall apart under heavy load.

Hopefully, there will be improvements soon, but until then, I am keeping my eyes peeled.

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