What went wrong with $YFI ?

Yearn.finance once the face of Decentralized Finance. Recently got a solid growth followed by a sudden 40% dump in minutes. What went wrong with it. 

Yearn Finance Got extraordinary growth in Last few months from 9000$ to 14000$ it spell a healthy 50%. The Active users on-chain also growing at a significant rate but suddenly the price plummed by a Strom and it lost its majority of marketcap fraction of few hours. 

So, what really happened. How once The Face of DeFi melted this bad way let's Find out.

♦️ Nearly half of the entire supply of YFI is held in 10 wallets. 

♦️ And now this rumour is coming that this was an exit scam by insiders.

♦️ Its market cap also vanished in hours, down from $525 million to $296 million.

♦️ As per data shared by @lookonchain, a wallet also transferred 446 YFI ($5.8 million) out, and most of which was deposited to exchanges.

♦️ A whale (@0x7d54)  also sold 96 YFI for 636 ETH ($1.23 million) at a price of $12,893 before YFI plummeted.

The Drama

On 12 Nov, this wallet (0xE94xx) bought these $YFI and then transferred to wallet (0x6exx) 7 hours ago. 6hours ago this wallet (0x6exx)sent 4.331m$ worth of #YFI to exchange (probably sold out); So this wallet (0xE94xx) made  1.2m$ from 725k$. 

@0x7d54 sold his huge $YFI holdings a few minutes prior to the big drop and saved his portfolio, but he boosted the drop significantly with his sells.

On 18 Nov, YFI dumped 37% in 8 hours

At the same time, YFI open interest spiked from $800k to $67m on @dYdX.  The pump and dump of spot YFI prices made it impossible for 

@dYdX to liquidate users at the right price as prices were moving too fast. This meant that as per dydx protocol, the insurance fund has to step in and insure the sloppy slippaged trades. The dydx insurance fund lost $9.5m.

#YFI

Source

1. Lookonchain

2. Dydx

3. Token Terminal

4. Twitter

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