Rug Pull Rumors Swirl As Token Takes A 45% Hit
Recent data analysis reveals a significant decline in the performance of YFI, the native token of the Yearn Finance platform. In a dramatic overnight development, the ecosystem’s native token Yearn Finance saw a staggering 40% drop.
This slowdown in YFI’s performance prompts a closer look at the complex dynamics of the decentralized finance landscape. THE sudden and substantial decline has sparked a wave of speculation within the community, with some expressing concerns that it could be an exit scam.
Much of its recent profits have been wiped out by the crisis. Investors quickly sold their holdings in YFI in response to the sell-off that shook the broader cryptocurrency market, causing a sudden change in value.
Yearn Finance suffers from apparent exit scam
As users seek to navigate and capitalize on potential returns in the crypto market, fluctuations in the value of YFI highlight the volatility and complexity inherent in DeFi environments.
Specifically, YFI dropped from $15,450 to $8,950 in just 24 hours. This sharp and rapid descent represents a substantial loss of $6,510 in YFI’s value.
YFI price has seen a notable upward trend over the past seven days. The asset was trading at nearly $9,000 just a week ago. But it quickly gained momentum and by Friday it had reached its highest price in over a year, above the $15,000 level.
JUSTIN: Aspire to finance ( $YFI ), one of the largest platforms in the DeFi ecosystem, just fell by over -45% in an apparent insider exit scam.
Nearly half of YFI’s total supply is held by 10 wallets, and more than $250 million in market value disappeared in a matter of minutes. pic.twitter.com/pMqonBcgux
– WhaleWire (@WhaleWire) November 18, 2023
In a few hours, the market capitalization experienced a significant drop, with the disappearance of nearly 250 million dollars. The market capitalization fell from $525 million to $275 million. Once again we see an upward trend; however, investor confidence was affected by this sharp decline.
The recent selloff sparked a weekend characterized by fear, uncertainty, and doubt (FUD) among members of the cryptocurrency community.
According to some users on X (formerly Twitter), claims were made regarding the distribution of the token supply, suggesting that 50% of the tokens were held in 10 wallets under the supervision of engineers.
It seems that Yearn Finance $YFI was shot
One of the largest DeFi platforms fell more than 50% in an exit scam run by insiders.
About half of YFI’s total supply is held by about 10 wallets. More than $250 million in market value disappeared in a matter of hours pic.twitter.com/Y1TbtlkltC
– Solid (@SolidTradesz) November 18, 2023
However, according to Etherscan data, it is indicated that a portion of these holders could potentially be wallets associated with cryptocurrency exchanges.
The roller coaster ride in the YFI market hasn’t just been a wild ride; This has been a game changer for crypto traders who are riding the waves of this digital asset’s fortunes.
Source: Etherscan
Crypto Holders Lose Nearly $5 Million
According to information from derivatives market tracker CoinGlass, the recent dived into YFI left crypto enthusiasts suffering huge losses of $4.99 million due to liquidations.
Traders who bet on YFI’s upward trajectory found themselves taking the biggest hit following the digital asset’s dramatic crash. It’s not just about numbers on a graph; it’s a story of high-stakes gambles and unforeseen twists and turns in the ever-unpredictable world of crypto trading.
Zooming in on the details, according to CoinGlass data, the brunt of the hit in total liquidations of nearly $5 million is borne by long positions, totaling up to $3.5 million in substantial losses.
YFI market cap at $309 million on the weekend chart: TradingView.com
The majority of these traders find themselves navigating the consequences on platforms such as giant Binance, alongside participants from Bybit and OKX.
This is a striking insight into the crypto battlefield, where the casualties of this market turmoil are felt by those who have taken bullish positions, and where the repercussions extend to some of the most prominent exchanges of the digital arena.
(The content of this site should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image by Markus Spiske/Unsplash
