Popular DeFi Platform, Yearn Finance (YFI) is in Deep Trouble: It is Rugged?

1 year ago 76

It appears that Yearn. Finance, YFI, was rug pulled. The token that achieved the highest price, ahead of Bitcoin, during the 2021 bull run appears to be in great danger. The global trading volume has dropped by over 20%, suggesting less trading activity. In these times, the volume soared over $8.1K, indicating the possibility of manipulation.

The YFI price has silently soared over 200% since the beginning of the month to mark yearly highs close to $16,000, at $15,955. No sooner than the token marked the highs, the selling pressure accumulated iconically, and the price plummeted below $10,000 in no time. Was it a pre-determined move? If yes, what’s the future of Yearn,Finance?

According to some reports, nearly half of the entire supply is held by just 10 wallets! And these wallets could have probably planned a deliberate rug!

$YFI
pretty deliberate rug imo

Prior to the rug, fairly obvious spot was being sold into price as well significant short exposure

Most of that short OI closed out here which halted the sell off ~ $8500 https://t.co/Gp5xG7oncH pic.twitter.com/KUHwiJPqLo

— Skew Δ (@52kskew) November 18, 2023

As per the data from a popular on-chain analytical platform, Skew, the wallets sold the spot that attracted a significant short exposure. With this, more than $2 million in YFI longs were liquidated, and a 40% rise in the longs was triggered due to the opening of short positions.

While the bearish clouds continue to hover over the crypto space, the altcoins continue to maintain a significant descending trend. The top altcoins like Ethereum (ETH), BinanceCoin (BNB), XRP, Solana (SOL), Cardano (ADA), etc, have been facing notable bearish actions. Therefore, the upcoming weekend could be extremely crucial for YFI and the other altcoins as Bitcoin continues to hold around the gains above $36,000.

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