According to data from CoinMarketCap, the price of YFII token suddenly plummeted at noon on May 25, from $ 1,212 to as low as $ 320, equivalent to a loss of nearly 74% of its value. The price of YFII then recovered to $768 by the evening of the same day.
On the evening of May 24, the price of COPE also dropped 77%, from 0.3 USD to only 0.069 USD. The development team of both projects is accused of rug-full, a term refers to a type of crypto scam that occurs when a team pumps their project’s token before disappearing with the funds, leaving their investors with a valueless asset.
On May 20, Binance announced that it will delist YFII from its platform as of May 25. As a result, YFII’s total value locked is also dropping sharply. The community is making many predictions about the cause of the incident, mainly that the YFII Money team is working on a rug-pull scheme. Many crypto investors have questioned whether YFII will be the “second LUNA,” as the project lost $33 million in market cap in just one day. The project development team has not made any announcement yet, however, YFII’s Telegram was suddenly disabled after the crash. 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.
On the evening of May 24, the price of COPE also crashed 77%, from 0.3 USD to only 0.069 USD. Many investors in this project have lost a large amount of money after the collapse. However, the COPE development team insists this is not a rug-pull case and the platform has not been attacked by hackers.
Actually, the reason for that crash comes from the devs team when they sold 10% of the coin’s supply to have money to continue developing the project. Right after the incident, the team posted on Discord to explain and apologize to investors.
According to Twitter account “dev.eth”, the development team sold 10% of the total COPE tokens, causing the price to drop by 77% and the total market cap to $1.3 million. Even so, the amount that the founding team earned was only 300,000 USD.
COPE is a project built within the Solana ecosystem, and it facilitates staking across different networks in the Solana ecosystem, such as Raydium and Orca. Users can also stake COPE to receive interest and play Shodown games 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 faith in the project.
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