Yearn.Finance token tumbles 43%, community speculates on exit scam
Yearn.Finance's YFI plummeted over 43% in just five hours on Nov. 18 after rallying almost 170% in the previous weeks. ...
- Yearn.Finance's governance token (YFI) experienced a significant drop of over 43% in just five hours on November 18, following a rally of almost 170% earlier in the month.
- This drop resulted in a loss of over $300 million in market capitalization from November's gains.
- Despite the drop, the YFI token is still up 83% over the past 30 days.
- The sell-off has caused fear, uncertainty, and doubt (FUD) within the crypto community.
- Some users on X (formerly Twitter) claim that 50% of the token supply is held in 10 wallets controlled by developers, but Etherscan data suggests that some of these holders may be crypto exchange wallets.
- Opening short positions may have triggered the drop, as data from Coinglass shows a jump in YFI open interest, indicating traders are shorting the coin.
- There are speculations about a possible exit scam, but the price movement after the decline is considered unusual for such scams.
- Yearn.Finance is a decentralized finance (DeFi) protocol launched by Ethereum developer and entrepreneur Andre Cronje in July 2020.
- No immediate response was received from Cronje or Yearn.Finance when reached out by Cointelegraph.
The sentiment in the article is mostly negative, with mentions of fear, uncertainty, and doubt within the crypto community due to the significant drop in YFI token value.