It’s All About Your Perspective
The recent news regarding Andre Cronje and his decision to call it quits has hit Fantom fairly hard. However, it is not as bad as you may think. I began accumulating FTM again at approximately $1.35, which turned out to be days before Fantom went on a tear to the upside. In essence, FTM has only shed a few months of price appreciation. I view this as an opportunity, due to the fact that though only a couple of months is lost, FTM is simultaneously significantly down from its recent peak. This is not great for buyers who bought the top but is perfect for those in my situation, or first-time buyers.
Fantom is currently trading at $1.26 at the time of writing and traded well over $3.20 just recently in mid-January. As someone with a long-term view, I see opportunity! So, where does this opportunity lie?
I have often spoken of buying decent staking coins early on in the game due to the fact that the yield is based on coin holdings and not a dollar value. In the case of FTM, investors stand the chance of increasing their yield quite substantially. Holders of FTM can stake their coins in the official Fantom staking pool and earn as much as 14.4% APR on a locked period of 1 year. Lower returns are also available for shorter periods, as well as a no lock-up period. In the event that FTM returns to trade above $3 again, that 14.4% will become approximately a 30% return on the initial investment in dollar terms.
In the event that the price stagnates or goes down, the initial coin allocation will be appreciating by 14.4% per year. This ultimately brings down your average entry price and subsequently brings down the mark at which you will now break even. Either way, you Look at it, quality staking coins are a superior option. In a positive outcome, you get to multiply your gains and in a negative outcome, you are hedged by the introduction of new free coins being accredited to your holdings.
Investments – Trades – Income Streams
Some people tend to view Crypto through only one of the above lenses when in essence there are different ways to approach it. A trade is not an investment and an investment is not necessarily an income stream. Ideally, you should be actively engaged in all three, at least in my opinion. Someone who buys a property to generate rental income may experience the value of his property go down temporarily due to market conditions. However, he is largely unfazed, as his intention is to create an income stream. Sure, he is hopeful that the price will correct and that his “unrealized” loss is only temporary.
This is how I view Fantom, as an income generator, which simultaneously causes me to realize an opportunity at hand. I am happy to put an allocation aside for 1 year. Not only does it increase my return but the price of FTM may increase quite substantially in that period. Forced to be a hodler, not a bad idea!
I am always on the lookout for opportunities like this one, as well as staking projects that are still in their infancy. My initial investment in FTM was when the coin was still trading for cents. As I mentioned, I began buying again at $1.35 when I realized that Fantom had been overlooked in the previous layer 1 pump.
There is always the chance that FTM could edge lower, especially if the general market does. There is also a massive double top pattern quite visible in the image above. Personally, I will wait for consolidation above the neckline, or buy heavy dips below. In other words, I have identified an opportunity but it is yet to qualify. Do your own research and plan accordingly. Risk is always present, even in the “safe” investment sectors.
Thanks for checking out Fantom with me today.