Yearn.finance’s YFI token continues to drop its price to almost -60% from its all-time high of $40k. This could be a bearish sign for the crypto, leading to its all-time low price.
In the past few days, YFI was seen to drop to almost -60% since September 12. If this continues, the crypto price could be seen to crash as deep as $10k, which is far down for the token to bounce back.
In line with this, the new gaming project called Eminence (EMN), created by the founder of Yearn.finance Andrew Cronje, was said to affect the crypto’s decline in price. It is said that YFI token users found the EMN contracts, which is still in the alpha stage. This triggered the dumping of over $15 million worth of YFI tokens that were converted to MakerDao’s stablecoin DAI in order to mint EMN tokens manually.
3/x 5. We posted the first clan "Spartans". And I went to bed.
6. Around ~3AM I was messaged awake to find out a) almost 15m was deposited into the contracts b) the contracts were exploited for the full 15m and c) 8m was sent to my yearn: deployer account.
— Andre Cronje (@AndreCronjeTech) September 29, 2020
Furthermore, a bug was found in the contract, making the DeFi users pull out the crypto they deposited in the platform, leaving investors empty-handed. The EMN project was then penetrated by hackers that successfully stole millions of dollars.
These events are some of the contributing factors to why YFI is suffering a major bearish signal today. Regardless, the DeFi space continues to grow its reputation across the crypto world as it maintains its total value locked (TVL) to over $1 billion.
Today, the DeFi market’s overall TVL amounts to $10.97 billion, wherein YFI contributes 6.79%.