Alleged Exit Scam Hits Yearn Finance YFI, Tanking 42% from $15k to $8k (2024)

• Yearn Finance native token saw a dramatic downturn, losing over 42% in 24 hours.
• YFI liquidations hit $4.99 million in 24 hours, with long positions accounting for $3.5 million of the losses.
• Significant investors allegedly triggered the downturn by an exit scam.

Data has shown a substantial downturn in the performance of YFI, the native token of the Yearn Finance platform, which is a collection of DeFi products allowing users to earn interest on their crypto assets.

According to statistics from prominent market tracker CoinMarketCap, over the past 24 hours, YFI experienced a staggering decline of more than 42.09%. In particular, YFI has fallen dramatically from $15,460 to $8,950.91, effectively shedding $6,510 under 24 hours.

Notably, this recent downward spiral observed in YFI’s market has had significant implications on the portfolio of crypto traders betting on the price of the digital asset.

In particular, data from the prominent tracker of the derivative market CoinGlass indicated that crypto market participants lost $4.99 million in liquidations due to YFI’s dramatic crash. Traders who bet on the digital asset’s uptick suffered the most significant hit.

Specifically, CoinGlass data showed long positions account for a loss of $3.5 million of the nearly $5 million total liquidations. Most of the traders are users of the largest crypto exchange, Binance, along with Bybit and OKX users.

Also, the liquidation observed in the last 24 hours accounts for the most substantial loss recorded in the last three months, per CoinGlass data.

While the factors that have led to this negative turnout are still being determined, a crypto enthusiast has suggested that it resulted from an alleged exit scam by significant investors. The pundit argued that a significant portion of YFI’s total supply is concentrated in just ten wallets, resulting in a sudden disappearance of over $250 million market value within minutes.