Yearn.Finance Token YFI Plummeted Overnight:
- The Yearn.Finance token (YFI) experienced a drop of approximately 45% in just a few hours.
- The crypto community is questioning a possible ‘exit scam’.
- Over $300 million in market capitalization has been wiped out.
An Unexpected Collapse for the YFI Token
During the night, the Yearn.Finance token (YFI) experienced a drop of approximately 45% in just five hours.
At the moment, YFI is trading around $9,069, down from its $14,185 recorded the day before. The project’s market capitalization has lost over $300 million.
This drop in the price of YFI comes after a 170% increase earlier this month. The token is still in the positive, up over 83% in the last 30 days.
Speculation Surrounds the Community Regarding This Drop
This drop has sparked speculation, uncertainty, and FUD (negative criticism) about the project. On Twitter, users have speculated about a possible exit scam, noting that 50% of the token supply is held in just 10 wallets, potentially controlled by the developers and creators of Yearn.Finance.
However, other data, belonging to Etherscan, reveals that most of these wallets belong to exchange platforms, not individual investors.
Another hypothesis is a massive short opening, which could have contributed to this drop, as shown by an increase in open interest for YFI on Coinglass.
Despite the current turbulence, the price of YFI seems to be stabilizing around $9,630.
