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Yearn.finance (YFI) experienced a sudden 45% drop in price within hours, falling from $14,500 to $8,300, leaving investors in shock. This drastic move has caused speculation about potential suspicious activities within the yearn.finance platform.
Yearn.finance (YFI) Tumbles 45%
On November 18, Yearn.finance (YFI) suffered a significant 45% decline, erasing most of its recent gains. This unexpected drop occurred as investors sold off their YFI holdings amidst a broader selloff in the crypto market. YFI price had surged over 160% in November, reaching a high of $15,591, before plummeting to $8,421 within 24 hours. This led to a loss of over $250 million in market cap, causing investors to lose confidence in the platform.
Possible Exit Scam?
Speculation is rife that the large and sudden selloff could be due to an exit scam by insiders, given that almost half of the entire YFI supply is held in just 10 wallets, including those of crypto exchanges. Coinglass data shows over $5 million in liquidations in the last 24 hours, with YFI contract positions dropping from a high of $162 million.
Altcoins Continue to Pull Back
As the broader market selloff continues, major altcoins like ETH, XRP, SOL, and ADA have also seen a dip, with the market cap falling by almost $25 billion in just 2 days. DeFi tokens are particularly affected, dragging the global market cap even lower.
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Hot Take: Analysts’ Predictions and Perspective
Varinder, a Fintech and blockchain expert with over a decade of experience, predicts further pullbacks in the altcoin market before another capital inflow. He advises conducting thorough market research before investing in cryptocurrencies, emphasizing personal responsibility for financial losses.
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