YFII dumped 74% within few hours, is this new LUNA?

The price of the YFII token of the DFI.Money project suddenly dropped sharply on May 25 after many reports accused the rug-pull development team.

At about 04:15 a.m (GMT) on May 25, the YFII token price on major exchanges suddenly dumped sharply, falling from $1,221 to as low as $320 in just 15 minutes, equivalent to nearly 74% of the value.

The YFII price subsequently recovered to $744 at the time of the update. However, currently three H1 candles continue to cover, causing anxiety for the token community.

It is not clear why the price of YFII has dropped so dramatically, but most theories at this point are because the DFI Money development team decided to rug-pull.

As mentioned in a recent CoinCu article, rug-pull is a form of token release of the project and left to float after the team behind it is no longer interested in the token.

The above argument is based on the fact that DFI.Money has long ceased to have any observable progress, the project’s communication channels have remained “quiet” despite the token being dumped, and there has been a very strong discharge of evidence, demonstrates that a huge corporation must be holding a large amount of tokens in order to generate momentum for the sell-off.

Launched in July 2020, DFI.Money (YFII) is a project that “copy” the operating model of the Yearn Finance (YFI) liquidity aggregator protocol on Ethereum. Because of the YFII dump, Yearn’s YFI price was negatively affected, but recovered quickly.

Besides, DFI.Money also announced on Twitter about the giveaway of 10,000 YFII tokens for 10,000 winners. Let it be as if nothing ever happened.

Is this a form of escape from the dev team? Or will DFI.Money be another LUNA? It seems that the answer still needs to wait a while. Follow CoinCu News to update related information!

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

CoinCu News