Yearn Finance (YFI) has experienced a staggering 45% price plunge within a few hours, dropping below $9,000 on November 18. This sudden decline was attributed to allegations of market manipulation, leading to a negative sentiment in the market and a significant increase in liquidations. The YFI token, which had recently reached highs of $15,548, witnessed a quick reversal in fortunes. The governance token of Yearn Finance, YFI had been experiencing a resurgence in the crypto market, with its price surge linked to profit-taking.
**Yearn Finance (YFI) price dives 45% in hours– what happened?**
Yearn Finance (YFI) saw a drastic drop of more than 45% to below $9,000 on November 18, wiping out all the gains made the previous week. The decline occurred amid allegations of market manipulation, including claims made by the dYdX team. The YFI token’s price, which was around $9,260 on Sunday morning, plummeted from highs of $15,548 to lows of $8,918 on Saturday, erasing all the gains it had made in the past month (Coin Journal).
**What Led to the Nosedive in YFI Price?**
The steep decline in Yearn Finance’s price was driven by negative sentiment in the market and allegations of potential market manipulation. Significant amounts of YFI were deposited to exchanges, and on-chain data revealed a large sell-off by a whale as prices plummeted. The dYdX team also highlighted alleged market manipulation, stating that they had used $9 million from their v3 insurance fund to address liquidation gaps in the YFI market (Coin Journal). Antonio Juliano, the founder of dYdX, expressed that the steep market decline was a targeted attack against dYdX, involving market manipulation of the entire YFI market and they were investigating alongside several partners to bring transparency to the issue.
The FUD surrounding YFI’s price increase in liquidations, with a total of $4.55 million being liquidated in 24 hours, and longs accounting for over $3.07 million (Coin Journal).
**What is Yearn Finance?**
YFI is the governance token of Yearn Finance, a leading yield farming protocol in the decentralized finance (DeFi) ecosystem. The platform offers a suite of products including lending aggregation, yield generation, and insurance, integrated by top DeFi players such as Aave, dYdX, and Compound. The token’s price surge is likely to have been influenced by profit-taking and a resurgence in the overall crypto market. As of writing, YFI has reduced its weekly gains to just over 2%, with a 30-day performance down to +85% (Coin Journal).
**Q: Is Yearn Finance (YFI) a good investment following the price plunge?**
A: The decision to invest in YFI or any cryptocurrency is subject to individual risk appetite and thorough market research. It is advisable to consult with a financial advisor before making any investment decisions.
**Q: Are there any regulatory measures being taken in response to the alleged market manipulation in the YFI market?**
A: Regulatory responses to market manipulation allegations in the YFI market have not been specified. It is crucial to monitor updates from regulatory authorities and the Yearn Finance team regarding this matter.
**Q: What measures has Yearn Finance taken to address the market manipulation claims?**
A: Yearn Finance has not publicly disclosed specific measures taken in response to the market manipulation claims. It is essential to stay updated with official announcements from Yearn Finance for any developments in this regard.