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Fantom: The Definitive Ethereum Killer?

Nov. 01, 2021 7:49 PM ETFantomCoin USD (FTM-USD)ETH-USD10 Comments


  • Fantom's value has more than tripled in the last few months.
  • Fantom's network structure makes it one of the best blockchains in terms of security, scalability and decentralization.
  • However, Fantom relies on Ethereum so I expect both to be winners in the future.
knife in darkness

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Thesis Summary

Ethereum (ETH-USD) has become one of the most successful and best-performing cryptocurrencies of the last few years, thanks to its ability to empower decentralized applications and smart contracts. The uses of this technology are practically endless, so it is no

This article was written by

James Foord profile picture

James Foord is an economist by trade and has been analyzing global markets for the past decade. He leads the investing group The Pragmatic Investor where the focus is on building robust and truly diversified portfolios that will continually preserve and increase wealth.

The Pragmatic Investor covers global macro, international equities, commodities, tech and cryptocurrencies and is designed to guide investors of all levels in their journey. Features include a The Pragmatic Investor Portfolio, weekly market update newsletter, actionable trades, technical analysis, and a chat room. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of FTM-USD, ETH-USD, BTC-USD, SOL-USD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (10)

25 Nov. 2021
Is it a good time to buy fantom?
Thanks for the analysis! I have been buying fantom since the low 0,40s and have been adding since. The most bullish coin imho. It’s also the first coin I heard of with a real life use case. In the sense that they help Afghanistan with fake medicine through their blockchain. Bullish all the way to 15 to 30 dollars🚀
Great article except Fantom is not an ethereum killer it is an ethereum helper fantom.foundation/...
@harryyeh 100% agree
Despite the rise (fully Backed by extreme TVL growth spread over multiple defi platforms so sustainable) I must agree this is one of the most undervalued crypto coins. Long and DCA when dropping significantly.

Long atom, KSM, bifi, auto as well
I’m trying to understand crypto and I get the gist of your article but am lost on some of the technical issues of the blockchain and crypto currencies. Since so many of us are learning, maybe include some very simple explanations for those of us who are not engineers or mathematicians? In any case, where do you buy Fantom if you’re located in the US?

I'm still new to crypto, so I don't know all the nuances.

But the theory behind the technical issues he mentions basically boil down to how efficiently and quickly the particular blockchains can process transactions (buying, selling, and mining coins).

For example, the Bitcoin blockchain can only process around 4 transactions per second, and the Ethereum blockchain can only process 13 transactions per second. For comparison, Visa processes around 65,000 transactions per second.

Blockchain transaction rates are a direct result of the complexity of the computations to conduct a single transaction. More complex transactions are harder to hack or get screwed up during processing but also require more power for computers to process which costs money

And these costs are very real. Depending on the blockchain and how many other people are doing transactions on it, one transaction can easily run $50 - $500 regardless of how much money is being moved. Buying a $5 burger has the same fee as buying a $50,000 car.

But places like Coinbase and Binance get around these fees in various ways (usually by buying a whole lot of these coins at once and then selling it to their users for a fee).

Bringing it back to this article, Fantom token is meant to vastly reduce the complexity (and thus reduce the cost) of conducting transactions.

BUT Fantom is just one of dozens of tokens trying to do the same thing, and they're not even the only token out there using asynchronous BFT (Hedera, HoneyBadger, Dumbo).

I don't know anything about the tech behind these tokens, so I don't know which claims make sense and which are just marketing fluff.
@InvestingEngineer thank you for helping explain!
No, it will be the pets.com coin.
Smithies profile picture
“Fantom relies on Ethereum so I expect both to be winners in the future.“ Can something that relies on another centralized thing (yes Ethereum is centralized in several ways: premine; nodes; decision making) really be decentralized?
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