Why did YF crash?

08/09/2023 13:53 • Daily Digest • 111 views

Why did YF crash? In the early morning today, the token price of YF briefly exceeded $0.007. However, YF’s price continued to decline from its previous slump, reaching a low of around $0.00005.

Why did YF drop so much? According to information released by the official team, after reaching a high point of $0.048 on the day of its launch, it quickly started to decline and has now fallen to around $0.030. Subsequently, the market gradually panicked. According to CoinMarketCap data, as of 2 PM on November 18 (GMT+8), the token has already fallen by nearly 40% (YF is a fork project of YFI, launched in September 2020). However, with the ongoing DeFi frenzy, continuous influx of funds and community users, and the development of the DeFi ecosystem, many participants have chosen to leave, causing significant market volatility and lack of liquidity.

The main features of YF are: high yields in DeFi; it can be used as collateral for mining and acquiring platform governance token YF rewards and protocol income. At the same time, the popularity of DeFi has attracted numerous investors to join the feast, ultimately garnering widespread attention and discussion in the market. The emergence of YF directly affects the operation of the entire industry.

The founding team of YF comes from Silicon Valley, USA, and they have led companies and research institutions in the cryptocurrency field. They have made contributions to the decentralized finance industry, helping users create an open financial system to invest in and manage their digital assets and wealth. One of the most important aspects is the development of developer tools.

According to data from YCharts, as of 1:50 AM in mid-December, YF has received over $30 million in new funding over a period of 21 days. Over the past few months, YF has received over $5 million in investment. This has resulted in the project’s valuation exceeding a staggering $300 million. Meanwhile, Ycrypto data shows that since the beginning of 2021, the project has raised a total of $150 million, second only to DeFi application Compound (COMP) with $20 million.

So why did this crash happen? Mainly because YF itself is not a new project, and it did not generate such a major event through multiple rounds of speculation and promotion. Moreover, it is a very interesting technical experiment that redefines blockchain technology by combining various concepts and innovations to create a simpler and more secure way for everyone to easily achieve self-discovery and self-certification.

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Why did YF crash?

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