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Fantom FTM crash course What is FTM and how does it work?

By Cryptocurrency News

Any blocks from the past 2-3 frames are considered confirmed, while new blocks are unconfirmed. Lachesis consensus is a DAG-based asynchronous Byzantine Fault Tolerant (aBFT) consensus algorithm. It offers many improvements over Classical, Nakamoto, and even practical Byzantine Fault Tolerance. It is Byzantine Fault Tolerant, while also being leaderless and asynchronous. Instead, the network uses a second type of node called a witness node to validate transactions.

  • So all smart contracts deployed on Ethereum are compatible with the Opera Chain.
  • He blamed his decision on the current crypto culture, citing a “toxic” DeFi community as his primary reason.
  • Fantom is posing to be a reliable alternative to Bitcoin, whose transactions process can take up to an hour, and Ethereum, which can take up to 10 minutes.

As an ultra-high speed and high-performance platform, Fantom believes it can become the IT infrastructure backbone for the emerging smart cities. However, the inability to stake FTM on major cryptocurrency exchanges has dampened its appeal among users that primarily use a centralized exchange’s yield-generating solutions. Likewise, Opera FTM storage is only supported via the Fantom Foundation’s official PWA wallet, thereby limiting the options for users who prefer other cryptocurrency wallets.

Why Invest in FTM?

Instead of storing all information on a single chain, Fantom spreads it out across hundreds of blockchains. These blockchains are all connected and use the same consensus model. Decentralized exchanges (DEXs) such as SushiSwap and Curve are integrated with Fantom, along with wallets such as MetaMask, Trust wallet and Ledger. Over the past few years, Fantom has attracted some of the largest crypto projects to its blockchain. Fantom’s mainnet is the Opera Chain, a blockchain that supports the Ethereum Virtual Machine. So all smart contracts deployed on Ethereum are compatible with the Opera Chain.

  • You can learn more about GOBankingRates’ processes and standards in our editorial policy.
  • Once you have bought your FTM tokens then the wise move would be to get them off the exchange and into a secure wallet.
  • It is important you do your personal research before considering buying any token.
  • We’ve found one company that’s positioned itself perfectly as a long-term picks-and-shovels solution for the broader crypto market — Bitcoin, Dogecoin, and all the others.
  • Whether you’re a seasoned trader or just starting out, the platform has something to offer.

This website is using a security service to protect itself from online attacks. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. The crypto market is booming, with a total value of $1.49 trillion, and daily trading volume exceeding $44 billion. Pullix is shaking things up in the world of DeFi by introducing a groundbreaking exchange.

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This is a powerful tool that can allow developers to create new projects that need high throughput and low transaction cost, which can’t be done on Ethereum. Some examples of uses for Fantom are in blockchain gaming, music streaming and smart contracts for micropayments. Fantom uses a distinct Proof-of-Stake (PoS) model, which is an independent layer called the “Lachesis Protocol” to achieve consensus. The goal of this protocol is to be integrated into the EVM-compatible smart contract chain called the Fantom Opera chain.

What is Fantom?

Although details still have not been revealed as of February, the project is rumored to be a collaboration of the two prolific DeFi developers. The excitement around Fantom comes largely from its potential to be a better version of Ethereum (ETH), the second-largest cryptocurrency. If Fantom is a crypto you’re thinking of adding to your portfolio, this primer will cover what you need to know about it.

It’s available on several large cryptocurrency exchanges

The solid performance of the IOTA token gives hope that investors will also see the value in Fantom. Notably, unlike other consensus mechanisms Lachesis nodes don’t send blocks to each other. Rather than voting on the concrete state of the network the nodes periodically exchange the events and transactions they have observed with their peers. As proof of the flexibility of Fantom the team was able to quickly pivot and make Fantom DeFi capable. Fantom’s EVM-compatible blockchain gives users the ability to mint, trade, lend and borrow digital assets directly from their wallets.

Indeed, the aBFT consensus protocol as implemented in Fantom allows for maximum decentralization, high scalability, and bank-grade security. Story Data is Fantom’s method for allowing all past transactions to be tracked, unlike Ethereum where tracking past transactions is limited. In Fantom each transaction and smart contract execution stores a small piece of data, the Story Data, that is used in functions for tracking transactions.

What is Fantom (FTM): Dark Horse of the Layer 1 Wars?

This is exemplified by Bitcoin–while it offers proven security through robust decentralization, it has thus far not been able to process retail transactions fast enough for mainstream adoption. Bitcoin’s throughput currently averages between 3.3 and 7 TPS whereas Visa’s TPS is 17,000. A little over 31% of Fantom tokens will be awarded for staking, or holding a supply of the tokens in the blockchain system to validate its transactions. This process will continue until 2024 when all available Fantom tokens will be distributed or rewarded. Established in 2018 by Dr. Ahn Byung Ik and colleagues working together in Australia, the Fantom organization has since moved its headquarters to South Korea. The system runs on an extensive matrix of blockchain-powered networks.

WLUNA vs LUNC: How Can Investors and Traders Benefit from These Terra Tokens?

By Cryptocurrency News

There is a theory that the additional term “classic” is a reference to the Ethereum / Ethereum Classic split in 2017. According to CEO, Do Kwon, the collapse of UST in the spring of 2022 is the equivalent moment of the Ethereum’s DAO hack that took place in 2017. LUNC is a token on the Terra network, while WLUNA is an ERC20 token representing LUNC on the Ethereum network.

  • In the Binance Luna 2.0 support announcement, it said it would resume LUNC trading on May 30.
  • Both versions of the token have the right to exist as a result of the implementation of a proposal called Terra Ecosystem Revival Plan 2.
  • The concurrent rise in all the Terra-backed tokens comes primarily as a result of the revoking of the Terra founder’s extradition.
  • In the same manner, airdrops can be used to reimburse funds, or at least provide an opportunity for an imbursement.
  • This is done through minting and burning the supply and demand of the coin.
  • Before the crisis, UST, Terra’s stablecoin, had a market value of more than $18bn.

Bitcoin, Bitcoin Cash, Ethereum, Litecoin and other popular cryptocurrencies can be purchased with U.S. dollars using Coinbase. Once you have purchased Bitcoin using Coinbase, you can then transfer your Bitcoin to an exchange such as Binance to purchase other cryptocurrencies, including Terra Classic. The primary real-world impact of LUNC burn is that it aims to increase LUNC value by decreasing its supply. With fewer tokens in circulation, each token inherently becomes more valuable. Over time, this mechanism creates a deflationary pressure that helps to boost LUNC value. For token holders, this means that the value of their holdings could potentially increase over time, leading to financial gain.

One of these is its open interest, which has been dropping for the past week as prices started falling. Proposal “Burn of 800m USTC Funds” is up for voting on the Station wallet. The proposal aims to burn the 800 million USTC still in the Risk Harbor multisig wallet via a contract. In a related decision, the Appeals Court had previously rescinded a ruling by the Higher Court that postponed Do Kwon’s extradition until he completed a prison sentence for a separate offense. According to a statement on the 19th of December, the Appellate Court found a significant violation of criminal procedure in the lower court’s decision. As a result, Kwon’s extradition to countries South Korea and the U.S. were promptly revoked.

LUNC Price Chart

Massive amounts of UST were sold off in mass panic, having a knock-on effect on LUNA price, which crashed. Terra platform is developed using the Cosmos blockchain technology and is introduced to challenge incumbent retail payment applications. Looking at the positives, Terra Luna Classic could have the potential to offer gains for investors, depending on the length of investment and reactions.

  • There is a theory that the additional term “classic” is a reference to the Ethereum / Ethereum Classic split in 2017.
  • Each transaction is subject to (on average) a 2%–3% fee charged to the merchant.
  • Always conduct your own due diligence before trading, looking at the latest news, a wide range of analyst commentary, technical and fundamental analysis.
  • Proposal “Burn of 800m USTC Funds” is up for voting on the Station wallet.

Before buying LUNC on any exchange, we recommend you research and compare the fees, security measures, and user reviews of different exchanges to find the one that best suits your needs. Once you choose an exchange, you can create an account, complete the necessary verification steps, and deposit funds to buy LUNC. LUNA was launched in 2018 and is the primary token used for staking and governance for the Terra network. Since the collapse of LUNA and UST in mid-May, most investors have lost faith in the Terra community.

Leading Cryptocurrencies

As we look to the future, it’s clear that LUNC has a promising road ahead. The innovative burn mechanism, coupled with a resilient community and a dedicated team, paints a bright picture for Luna Classic’s future. While the journey may be fraught with challenges, the potential rewards are substantial.

Those concerned about the tokenomics of this beaten-down project now have a catalyst to jump on today. Given the rather complex restructuring that’s still ongoing with the Terra Classic blockchain, there’s plenty of room for speculation around this token. Accordingly, investors had seen previous rallies in this token that many have attributed to the equivalent of meme rallies in recent weeks. Indeed, some holders bought more Luna Classic in the lead up to the new chain. The Luna 2.0 airdrop of new tokens included an allocation for existing Luna holders.

Crypto Expert PlanB Reveals a Catalyst That Could Skyrocket Bitcoin to All-Time High in Just Four Months

The goal of this burn tax is to ultimately reduce Terra’s bloated supply of its LUNC token from 6.9 trillion to around 20 billion. That said, such burns are meaningless if crypto exchanges do not engage. The introduction of the Terra Classic platform empowered the price-stable global payment systems and made trading and investment much more secure. Terra’s native token, LUNC can be purchased from exchanges such as Binance, KuCoin, Huobi Global,, MEXC, Kraken, and V2.

LUNC in the Future: Predictions and Possibilities

The abrupt collapse of the Terra ecosystem in May 2022 was a ‘black swan’ event, with damaging consequences for its investors and the whole cryptocurrency community. In the same manner, airdrops can be used to reimburse funds, or at least provide an opportunity for an imbursement. On May 28, Do Kwon’s revival proposal spawned Terra 2.0, creating LUNA tokens on a hard-forked chain, while the original LUNA were renamed LUNA Classic (LUNC). If UST went over the one-to-one peg against the dollar, LUNA tokens were burned to mint UST in equal value. Because this increased UST supply, it brought down its value back to the USD peg.

The majority of the investors consider LUNC better and safer due to the launch of a completely new network and adaptation of the PoS mechanism. Terra Classic wallet can be used to store the LUNC token which safeguards the token using public and private keys. These wallets make it easy for the buyer to store and use the purchased tokens for different purposes. On the flip side, the value of LUNA can also decrease if UST is perceived as unstable.

LUNC in practice LUNA serves as a stabilizer that captures rewards through seigniorage and transaction fees. Using UST as an example, when the value of the stablecoin is below $1, users can artificially destroy one UST to get $1 worth of LUNA. When the value rises above $1, users can burn $1 worth of LUNA to get one UST, collecting seigniorage in the process. Through this process LUNA can regulate the relative scarcity of UST and thus maintain the value of the Terra stablecoin, allowing it to function closer to that of a fiat currency. LUNA is also used to validate Terra transactions and stakers can earn transaction fees from the protocol.

One should not pour life savings into experimental financial platforms, especially ones that rely on algorithmic stablecoins. In a mature crypto ecosystem, they may work robustly, but not in an incipient ecosystem. As a part of the recovery plan, the V22 upgrade provides LUNC token holders an opportunity to recover some of the funds lost in May’s implosion. The update enabled 1.2% burn tax whenever LUNC tokens are burned to mint UST (also rebranded to USTC). Airdrops are very flexible vehicles to market blockchain projects, create media hype and reinvigorate a stagnant protocol with new incentives.