Another YFI copycat enters a death spiral making it crash by 99% percent in over two days as we are reading more in the upcoming altcoin news today.
Yearn.finance has become an instant hit and preferred product of the Ethereum decentralized finance space. The native token which many consider it the “fairest cryptocurrency since bitcoin” rallied by more than 100,000 percent in the span of one week. The investors took interest in the project and now the total value locked in yearn.finance spiked to make it to the eight biggest Defi protocol.
YFI’s success spawned yet another YFI copycat that tried to emulate the parabolic growth that the real one underwent. These clones for their proponents are not succeeding as one copycat YFFI entered the “death spiral” while another copycat Asuka.Fiannce scammed the early adopters of more than $60,000 worth of funds. Just a few days ago, the YFFI or the latest yearn.finance fork hit the markets.
Looking at it from a price perspective, it seemed that the ETH-based coin was doing well as the data from CoinGecko suggested and it traded as high as $671 giving it a market cap in the single-digit millions. The protocol had also a lot of coins locked in as well. However, as Mechanism Capital’s Andrew Kang pointed out, YFFI entered a death spiral with the price crashing 99% in two days. YFFI now trades at $4.52. According to another twitter user who analyzed the YFFI before it crashed, the crash was looming on the horizon.
The latest clone is trying something new. If you do clone (and you are welcome to), please change a few things so we get new data from the experiment. Repeating the same experiment isn't fun.
If you are planning on cloning already, I have some ideas for different results.
— Andre Cronje (@AndreCronjeTech) August 2, 2020
The user found that the project’s founders started farming “5 whole hours before everyone else” which meant that they held a larger chunk of the crypto relative to the retail participants. This means that they had the power to dump a larger number of YFFI on the newcomers suppressing the price. With each fork of YFI that is spawning its own unique disaster, the founder of yearn. finance Andre Cronje issued a comment:
“The latest clone is trying something new. If you do clone (and you are welcome to), please change a few things so we get new data from the experiment. Repeating the same experiment isn’t fun.”
Cronje added that he has a few ideas on how the ETH-based technology can be forked to create different results but he didn’t explain what those ideas are. Others took a more critical approach saying that all yearn.finance forks have actually no intrinsic value at all. Michael Gu remarked that for those speculating on the YFI and its forks:
“All these new coins have no intrinsic value. They also have low initial supply and are extremely volatile. You have been warned.”
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