The price of Year.finance’s decentralized finance platform token, FYI, crashed by more than 40% this Saturday, wiping out the cumulative gains that the asset had recorded for several days. Alerts have been issued in the Bitcoin community warning of a possible exit scam or rug pull.
According to CoinMarketCap, the FYI token issued in 2020 is fall 46% in less than a day. It rose from an average of $15,500 on Friday, November 17th to $8,400 early Saturday.
The asset recovered after the decline and is still holding strong at the time of writing. approximately $9,140.
The decline in the price of Yearn.finance corresponds to what the asset has gained since 6 days ago. On November 11th, FYI was trading above $8,500.
Yearn.finance is a decentralized finance (DeFi) protocol that allows users to automate cryptocurrency investment strategies. It was created in 2020 by software developer Andre Cronje.
The protocol launched FYI the same year, based on an ERC-20 token (from the Ethereum network). It is governance, meaning it allows holders to vote on protocol decisions. It also grants rewards to the holders of this asset.
For your information, the event received a great response and was well received by the industry. The value reached as high as $66,000, the last all-time high for this token, whose market capitalization is more than $300 million.
Alerts have been activated due to a possible exit scam
The abrupt drop in price of the FYI token alarmed Bitcoiners and other members of the community, who warned about the possibility on social networks that a new exit scam or rug grab is brewing.
On X (formerly Twitter) is the retailer known as Solid warned that YFI could conduct a rug pull or exit scam by internal investors. And he said that accounts for about half of YFI’s total supply is in the hands of 10 wallets.
“More than $250 million in market value disappeared in just a few hours,” the trader warned.
Cryptocurrency market analyst Chris Blec also chimed in criticalIn short, users of digital assets continues Entering projects that end in fraud. He accompanied this with an image of the FYI price chart.
“It’s like people absolutely refuse to learn.” said sheet metal
Nicolás Bourbonni, Argentine Bitcoiner, was part of the warning and remembered that a few months ago the FYI developers implemented a website that compares the price of this token with that of Bitcoin (BTC).
Bourbonni also recalled that Year.finance spoke of YFI Flippening, a hypothetical event in which the value of the token exceeds the value of BTC. “The Things We Bitcoiners Must Patiently Resist” said the specialist.
While the alerts are active, there is no indication that an exit scam or robbery has been committed. The project’s social media accounts They are still activated, as well as your website. In fact, it is possible to interact with the creator of the protocol, Andre Cronje.
CriptoNoticias attempted to communicate with Yearn.finance but there were no responses at the time of writing this article.