Yearn.Finance’s governance token (YFI) plunged more than 43% in just five hours on November 18 after rising nearly 170% earlier in the month, sparking concerns about a possible exit scam.
The November gains wiped out more than $300 million in market value amid a sharp decline in value, according to Data from CoinMarketCap. As of this writing, the YFI token is trading at $9,069, compared to $14,185 the day before. However, the coin is still up 83% over the past 30 days.
The sell-off sparked another weekend of fear, uncertainty and doubt (FUD) within the cryptocurrency community.On X (formerly Twitter), some users claim 50% of the token supply is held in 10 wallets controlled by the developers.However, Etherscan data suggestion Some of these holders may be cryptocurrency exchange wallets.
Additionally, some users of X pointed out that opening short positions may have triggered the move.Data from Coinglass programme YFI open interest has increased significantly, showing that traders are beginning to short the token following the November rally.
“I bought the dip…someone sold 1,000 tokens, maybe that’s why it dropped so much. We’ll see.” commented A trader on
“It doesn’t look like a pull at all. Because despite selling so much, the price is still holding steady at 9k, which is 80% above the bottom.”
Yearn.Finance is a decentralized finance (DeFi) protocol that provides automated trading solutions for the DeFi market. Ethereum developer and entrepreneur Andre Cronje launched the protocol in July 2020. Cointelegraph reached out to Cronje and Year.Finance but did not receive an immediate response.
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