The Fantom Foundation recently disclosed its plans to establish the Sonic Foundation and Sonic Labs in preparation for the launch of its Sonic blockchain.
In an announcement on Thursday, the foundation expressed its commitment to leveraging its technology and revealed additional details about upcoming developments.
Fantom presents Sonic Chain
According to the foundation blog postWith the completion of its Opera chain upgrade on the horizon, Fantom is turning its focus to creating a new “high-yield” chain called Sonic (S).
The introduction of the Sonic network will coincide with the establishment of the Sonic Foundation, which will assume responsibility for governance and treasury management functions. Additionally, Sonic Labs will lead the company’s growth decentralized applications (dApps), partnerships and user engagement.
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Developed under the guidance of Professor Bernhard Scholz, a virtual machine developer, and led by decentralized finance (DeFi) expert Andre Cronje, the Sonic chain represents a new type of Layer-1 platform with a native Layer-2 bridge connected to Ethereum (ETH network).
Sonic chain is reportedly designed to serve as a Layer 1 solution connected to Ethereum via a Layer 2 bridge. This integration aims to allow Sonic to leverage Ethereum’s liquidity, user base, and protocols.
As a result, the network will combine the benefits of a Layer 1 platform, such as accessibility, scalability, and speed, with the security of a Layer 2 bridge, providing access to native ETH and other assets on Ethereum.
US$10 million raised in strategic financing round
Regarding the “S” token, a recent governance vote ensured compatibility and migration between the native token of the decentralized platform FTM and S on a 1:1 basis.
Fantom also announced the successful completion of a $10 million strategic financing round led by Hashed, one of the Korean companies cryptocurrency funds. This funding initiative for the foundation is expected to expand further in the coming months.
In addition to Hashed, UOB Ventures, Signum Capital and Aave (AVE) Foundation, along with angel investors Stani Kulechov, Robert Leshner, Michael Egorov, Fernando Martinelli, Tarun Chitra and Sam Kazemian, and individual UOB partners, provided support during the round of financing.
The capital raised in the latest round of financing will be used exclusively to support strategic growth initiatives and ecosystem development Within the Fantom network, according to a statement from the foundation, which ended by saying:
Our team is steadfast in exploring how Sonic Chain can impact and elevate several different DeFi and real-world use cases. Industries and applications such as real-world assets, perpetual DEXs, payments, trading, and high transaction-based gaming can be transformed by Sonic’s speed and high throughput.
FTM Faces Potential Downtrend Continuation
Despite these developments, the FTM Token exhibited a lackluster response to the successful financing round and the potential benefits of the Sonic chain.
As a result, the token fell more than 4% in a 24-hour period, putting a significant level of support for the native token at risk.
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Currently trading at $0.8033, the FTM token’s immediate prospects depend on the crucial support level at $0.7994. A violation of this support could lead to further price declines, with the next major support at $0.755.
On the other hand, if new bullish momentum and increased buying pressure emerge, the token could encounter resistance at the $0.844 and $0.8750 levels before potentially retesting the key $0.9 zone. Reclaiming the $1 milestone remains critical to the token’s overall outlook.
Featured image from Shutterstock, chart from TradingView.com