Yearn.finance (YFI) experienced a sudden 45% fall in price within hours, sliding from $14,500 to $8,300, leaving investors in shock. This drastic move has caused speculation about probable suspicious activities within the yearn.finance platform.
Yearn.finance (YFI) Tumbles 45%
On November 18, Yearn.finance (YFI) suffered a whole lot of 45% decline, erasing most of its recent gains. This unexpected fall took place as investors sold off their YFI holdings amidst a broader selloff in the cryptocurrency market. YFI price had surged over 160% in November, hitting a peak 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 may 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 cryptocurrency exchanges. Coinglass data shows over $5 Million in liquidations in the previous day, 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 Ethereum (ETH), XRP, SOL, and ADA have likewise seen a dip, with the market cap sliding by almost $25 Billion in just 2 days. DeFi tokens are particularly influenced, dragging the worldwide market cap even lower.
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 financial resources inflow. He advises conducting thorough market research before investing in digital currencies, emphasizing personal responsibility for financial losses.
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