Coinbase Announces Removing Fantom Trading, FTM Price Dip Ahead?

Coinbase has announced that it will suspend trading for Fantom across its two platforms. This has led to speculation that the suspension of FTM-PERP from the crypto exchange platform will lead to price dips in the times to come. It is interesting to note that the development is happening amid the CFTC scrutiny of the platform in the Polymarket investigation.

Coinbase to Suspend Fantom Trading

In a recent X post, Coinbase announced that it has decided to suspend trading for Fantom-PERP effective January 24, 2025, from around 10:30 AM UTC. Termination of FTM-PERP trade will be applicable across Coinbase International Exchange and Coinbase Advance, based on a pre-decided way to settle the final price.

Coinbase has clarified that the final settlement price will be calculated by considering the average index price 60 minutes before the suspension of trading sessions. The leading crypto exchange platform has also said that the funding rate will be set to zero before the final settlement concerning the final funding period. Then, it will automatically settle open positions, if any, at the time of suspension.

What’s Next for FTM Price?

This development has left FTM traders worried about the future price of Fantom tokens. FTM is currently being traded at $0.6953 which is up by 6.09% in the last 24 hours. However, the FTM price has plunged by 11.80% in the last 7 days and 41.62% in the last 30 days.

FTM prices seem to be recovering from the recent losses, as is evident from market cap and 24-hour trading volume. Both have soared by 6.56% and 0.35%, applicable in the same order, while FTM runs on bearish sentiments with a volatility of approximately 22.52%.

The next few days will see FTM rebrand itself to Sonic with a swapping ratio of 1:1. This transition is tentatively slated to happen on January 13, 2025, with Binance being one of the supporters. The said platform will open deposits of Sonic on January 16, 2025, along with trading pairs at around 08:00 UTC.

Coinbase’s CFTC Scrutiny

The suspension of FTM and speculation for FTM price coincide with the US CFTC issuing a subpoena to Coinbase. It is linked to the Polymarket investigation, and the US Commodity Futures Trading Commission has sought information about customers from the crypto platform. The company has sent an email to its customers mentioning that it may have to share information related to their accounts with authorities but no immediate action is required from customers’ side.

What happens next in the Polymarket investigation and CFTC’s scrutiny of Coinbase should be interesting to note. Joe Biden will soon bid adieu to the Presidential position, and Donald Trump will take over the office. Also, the current CFTC Chair Rostin Behnam is reportedly stepping down on January 20, which has also fueled investors’ optimism.