YFI, which is also listed on major stock exchanges, brought allegations of manipulation after its sharp decline.
Cryptocurrencies have experienced noticeable declines in the last few days. Altcoins encountered selling pressures in the upward trend created by FOMO. BTC’s continuous decline to $34,000 levels triggered money outflows in altcoins. On the other hand, interesting movements were also observed in several altcoins.
The decentralized finance (DeFi) project yearn finance (YFI) experienced an increase of nearly 50 percent from November 14 to November 17. However, YFI witnessed a 40 percent decline during the day. This activity in the coin raised suspicions of manipulation.
YFI surprised the price: What’s going on?
Yearn Finance (YFI), which is listed on stock exchanges such as Binance, Coinbase and Kraken, rose by 50 percent and fell by 40 percent in a short time. While price volatility was surprising, allegations of manipulation emerged.
While YFI was around 10 thousand dollars on November 15, it experienced an increase of more than 15 thousand dollars on November 17. Later, YFI retreated and settled in the 14 bi dollar band. While it was expected that YFI would start its bull run and revive the DeFi sector, the sudden drop was surprising. YFI started to decline on the night between November 17 and November 18, ultimately falling by 40 percent. The price dropped to 9 thousand dollars.
After YFI’s surprising fall, a new post came from the data analysis platform Lookonchain. Lookonchain confirmed that a whale sold a large amount before the crash.
According to Lookonchain, the whale sent $5.8 million of YFI to centralized exchanges. Before the cryptocurrency experienced a decline, he sold his YFIs at the level of 12 thousand 800 dollars. YFI dropped to 9 thousand dollars during the day.
YFI, which equaled the highest annual price point, suffered from sales at its peak. According to the data, YFI is mainly held in 10 wallets. Looking at the whale sales confirmed by Lookonchain, it appears that the price was increased manipulatively and the sale was made. An X user claimed in his post that the YFI movement was a potential rug (raising the price and selling).
$YFI
pretty deliberate rug imoPrior 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
YFI is the most devalued cryptocurrency of the day.
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