Obstacles Arise With Coinbase Delisting For Fantom Price

• The Fantom price has dropped significantly since mid-December 2024, failing to recover despite brief rallies.
• On January 24, 2025, Coinbase will delist the FTM-PERP pair, citing evolving regulatory pressures.
• Market reception to the Sonic transformation will be critical for the Fantom price recovery.

Since mid-December 2024, the Fantom (FTM) crypto trajectory has declined steeply. With this, the cryptocurrency experienced relentless losses. Even the brief six-day New Year rally offered little momentum as the price continued to slide deeper with each passing day.

By early January 2025, the Fantom price had broken below the critical 200-day EMA band. This happened after facing resistance at the 20-day and 50-day EMA bands on January 4th.

The situation has grown increasingly worse, compounded by heightened market scrutiny. Coinbase’s upcoming trading ban for Fantom, rising regulatory demands, and the current pessimistic sentiment have all contributed to the concern.

These developments have placed the Fantom price in a critical position. This prompted analysts to reassess their technical and fundamental perspectives. Despite these challenges, there is a glimmer of hope on the horizon.

Fantom’s upcoming rebranding to Sonic and the impending departure of the current CFTC Chair have fueled cautious optimism.

However, the exact impact of these events on the Fantom price remains unclear. To explore more detailed insights into what lies ahead, continue reading for further analysis.

Coinbase Announces FTM-PERP Delisting, Sparks Concerns Among Fantom Traders

Coinbase has decided to delist the Fantom perpetual pair (FTM-PERP). They have officially said they will delist on Coinbase International Exchange and Coinbase Advanced.

Their announcement post on X stated that trading for this pair will officially cease on January 24, 2025, at 10:30 a.m. UTC. The final FTM-PERP settlement price will be determined by averaging the index price during the 60 minutes before the suspension.

Moreover, the exchange clarified that funding rates will be zero for the final funding period. Furthermore, any open positions in FTM-PERP will be force-settled at the time of the trading halt. Traders are urged to close their positions beforehand to avoid automatic settlements.

This move has triggered widespread worries and unease among Fantom traders and the broader community. Even some Market analysts warn that delisting could intensify the Fantom price challenges. This is possible as reduced accessibility might hinder its liquidity and market exposure.

Similarly, The timing of this development coincides with Fantom’s already struggling price performance. Also, in a broader context, it has intensely followed Bitcoin’s sharp correction from its $108K peak. Fantom price has been on a downward trajectory since then.

Likewise, with Coinbase’s delisting on the horizon, concerns are mounting that the token could face further downward pressure. This has been deepening traders’ anxiety about its near-term future.

U.S. Regulators Is Also Part Of What Led To The Delist

Coinbase’s delisting announcement of Fantom’s perpetual pair (FTM-PERP) closely aligns with escalating regulatory scrutiny. That was mainly from the Commodity Futures Trading Commission’s (CFTC) ongoing investigation into Polymarket.

The CFTC recently disclosed that it had issued a subpoena to Polymarket. There, it demanded access to customer data as part of its probe.

In response, the platform informed its users that it might be obligated to share account information with authorities. However, no immediate action is required from their end.

Moreover, this investigation has unfolded amid a broader regulatory change. That will happen as soon as Trump sits on his white house throne. The timing is notable, as the CFTC is also poised for a leadership transition, adding further uncertainty to the regulatory landscape.

For Coinbase, it seems that evolving legal standards present significant hurdles. So, FTM-PERP delisting could signal the exchange’s efforts to mitigate potential risks from the changing regulatory environment.

Fantom Faces Market Uncertainty Amid Rebranding and Regulatory Challenges

The impending deactivation of FTM-PERP and the heightened regulatory scrutiny have left Fantom traders in a worrisome position. Market participants are increasingly concerned about the token’s future as uncertainties loom.

Adding to this volatile mix, Fantom is undergoing a major transformation. On January 13, 2025, the project will rebrand to Sonic, including a 1:1 token swap for its existing FTM tokens.

This move, announced in August 2024, is part of a larger plan to reestablish itself as Sonic Labs. This will be operating on the Sonic chain.

Similarly, leading exchanges have supported this transition from Fantom to Sonic. Binance, for instance, will begin accepting Sonic deposits on January 16, 2025, with trading pairs available immediately.

This rebrand aims to reignite investor interest and enhance community engagement. The success of this step largely hinges on market sentiment and adoption levels.

Likewise, the Fantom’s rebranding may signal a calculated response to mounting challenges. This includes Coinbase’s delisting decision and growing regulatory pressures, such as the ongoing CFTC investigations.

Furthermore, the analysts speculate that the project’s new identity could generate fresh interest. Also, token usage might be bolstered if the ecosystem delivers on its promised new features.

Despite these strong efforts attempted, the price trajectory for FTM remains uncertain. Market participants will closely monitor developments leading to Coinbase’s January 24th delisting deadline.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.