Two crypto projects lost 3/4 of their value, investors suffered heavy losses
As noted by CoinMarketCap, on the afternoon of May 25, the price of YFII coin suddenly plummeted, down from 1,212 USD about as low as 320 USD, which equates to a loss of almost 74% of its value. YFII price then recovered to 768 USD evening of the same day.
On the evening of May 24, the price of COPE also “evaporated” 77%, from 0.3 USD down to only 0.069 USD. The common point of the two projects is that both are accused of rug-pull or “carpet withdrawal”, a term that refers to the fact that the development team sells tokens to take profits, causing losses to investors.
COPE and YFII both plunged within 24 hours. Photo: TradingView.
Previously, on May 20, cryptocurrency exchange Binance announced that it would remove YFII from its list of alternative margin loanable assets from May 25. As a result, YFII’s total key value (TVL) is also plummeting.
The reason behind the drop of YFII is unknown. The community is having a lot of conjecture about the cause of the incident, mainly that the DFII Money team is carrying out a rug-pull conspiracy.
In the crypto world, rug-pull refers to people developing a coin who abruptly quit a project and take investors’ money with them. This is a fairly common form of fraud, especially with decentralized finance (DeFi) projects, when the entire transaction is conducted by code, not by an organization.
Many crypto investors have questioned whether this is the “second LUNA”, as the project has lost 33 million USD capitalized in just one day.
Currently, the project development team has not made any announcement about this incident. However, YFII’s Telegram channel was suddenly closed after the above incident.
Launched in July 2020, DFI.Money (YFII) is a decentralized finance (DeFi) platform that aims to build products based on providing aggregated liquidity, leveraged trading, and automation. marketing…
On the evening of May 24, the price of COPE also “evaporated” 77%, from 0.3 USD down to only 0.069 USD.
Many investors in this project have lost a large amount of money after the incident. However, the COPE development team insists this is not a rug-pull case and the platform has not been attacked by hackers.
The cause of the incident came from the project team itself. The team of founders and developers of the COPE project on the Solana platform unexpectedly sold 10% of the total COPE coins to have money to continue to develop through the current difficult period. Immediately after the incident, the team posted on Discord to explain and apologize to investors.
Because of the development team’s confusing decisions, the community considers COPE to be a rug-pull conspiracy. Photo: COPE.
“We were forced to exchange some COPE to USDC. Sorry everyone this has caused the price to drop, but we need the money to help sustain the team through this difficult time. We have tried to raise capital through a series of venture capitalists, but have not been successful in the current market situation,” said the COPE project development team.
The Twitter account “dev.eth” said that the founding team sold up to 10% of the total COPE tokens, causing the price to drop 77% and bring the total market capitalization of COPE coins down. 1.3 million USD. Even so, the amount of money the founding team earned was only 300,000 USD.
Built on the Solana platform, COPE is a project that provides trading signals based on accounts. In addition, users can also accumulate COPE to receive interest and play the platform’s Shodown game to receive rewards.
It is not clear if this sell-off can help the development team, but it certainly caused investors to suffer losses and lose confidence in the project.
at Blogtuan.info – Source: danviet.vn – Read the original article here
