Fantom (FTM) Faces Uncertainty as Coinbase Suspends Trading

KeyTakeaways:

• Coinbase will suspend Fantom-PERP trading on January 24, 2025.  
• FTM token price shows mixed reactions, with a slight increase amid the delisting.  
• CFTC investigation into Coinbase adds regulatory pressure on the platform.

Coinbase has announced the suspension of trading for Fantom (FTM) tokens, effective January 24, 2025. This move has raised concerns about potential price impacts. The delisting will affect FTM-PERP trading on Coinbase International Exchange and Coinbase Advance. 

As part of the suspension process, the final settlement price for FTM will be calculated based on the average index price observed 60 minutes before the trading cessation. Coinbase has confirmed that the funding rate will be set to zero, and all open positions will be automatically settled at the time of the suspension.

Despite the announcement, FTM has experienced a price increase of 6.09% over the last 24 hours, trading at $0.6953. However, the token has dropped 41.62% over the last 30 days and has experienced a 11.80% decline in the past week. The market reaction to the news has been mixed, with some investors speculating that the price may dip further in the coming weeks.

Coinbase’s decision to delist FTM amidst increased scrutiny from the US Commodity Futures Trading Commission (CFTC). The regulatory body has reportedly subpoenaed Coinbase concerning its investigation into the Polymarket platform. 

Although Coinbase has assured its customers that no immediate action is needed from them, the ongoing investigation adds another layer of uncertainty to the exchange’s operations.

Additionally, FTM’s market activity is influenced by a broader transition, as the token is set to rebrand to Sonic on January 13, 2025. This rebranding event includes a 1:1 swap ratio, with Binance being one of the key supporters. Deposits for Sonic will be available starting January 16, 2025, further affecting investor sentiment and market dynamics.

The timing of these developments is crucial, as FTM’s price remains under pressure amid the delisting and rebranding events. As the CFTC’s investigation into Coinbase unfolds, market participants will closely monitor the situation for any further developments that could influence the price of FTM.