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<p>Popular DeFi protocol Yearn Finance’s native token YFI plunged 45% in an apparent insider exit scam that vaporized over $250 million in market value instantly.</p>
<p><a href="https://twitter.com/WhaleWire/status/1725754332950258062?t=wiRKO9uwA0Bkffc5K4x34w&amp;s=19" target="_blank" rel="noopener noreferrer nofollow">According to WhaleWire</a>, Yearn Finance insiders are suspected of orchestrating a pump-and-dump scheme that left YFI holders scammed. This massive selloff comes right after YFI surged from $4,900 to $16,000 since mid-October.</p>
<p>In hindsight, that rally now appears manipulated to prop up prices before insiders dumped their tokens. Nearly half the total supply of YFI is controlled by just 10 wallets, showing the concentration of tokens.</p>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="587" src="https://captainaltcoin.com/wp-content/uploads/2023/11/image-472-1024x587.png" alt="" class="wp-image-380014" srcset="https://captainaltcoin.com/wp-content/uploads/2023/11/image-472-1024x587.png 1024w, https://captainaltcoin.com/wp-content/uploads/2023/11/image-472-300x172.png 300w, https://captainaltcoin.com/wp-content/uploads/2023/11/image-472-767x440.png 767w, https://captainaltcoin.com/wp-content/uploads/2023/11/image-472-1536x881.png 1536w, https://captainaltcoin.com/wp-content/uploads/2023/11/image-472-2048x1174.png 2048w, https://captainaltcoin.com/wp-content/uploads/2023/11/image-472-262x150.png 262w, https://captainaltcoin.com/wp-content/uploads/2023/11/image-472-100x57.png 100w, https://captainaltcoin.com/wp-content/uploads/2023/11/image-472-610x350.png 610w, https://captainaltcoin.com/wp-content/uploads/2023/11/image-472-788x451.png 788w, https://captainaltcoin.com/wp-content/uploads/2023/11/image-472.png 900w" sizes="(max-width: 1024px) 100vw, 1024px">
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<p>Once prices hit their peak, insiders cashed out, crashing YFI’s value in minutes. The scam demonstrates the continued risks in DeFi protocols with centralized token distributions.</p>
<p>Yearn Finance had cultivated an image as a leading DeFi protocol since launching in 2020. But this apparent pump-and-dump exit scam reveals potentially serious deficiencies in governance and trust.</p>
<p>The developers behind Yearn Finance will now face heavy scrutiny and backlash from the community following the collapse in YFI’s value. Faith in the project’s fundamentals is shattered.</p>
<p>Read also:</p>
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 <li><a href="https://captainaltcoin.com/why-this-analyst-says-avalanche-could-trounce-solana-soon/" target="_blank" rel="noopener noreferrer nofollow">Why This Analyst Says Avalanche Could ‘Trounce’ Solana Soon</a></li>
 <li><a href="https://captainaltcoin.com/mixed-reactions-in-solana-community-as-whale-unstakes-over-31m-in-sol-sends-to-these-exchanges/" target="_blank" rel="noopener noreferrer nofollow">Mixed Reactions in Solana Community as Whale Unstakes Over $31M in SOL, Sends to These Exchanges</a></li>
</ul>
<p>This serves as another warning to DeFi investors to vet token distribution schedules. Protocols controlled by a handful of insiders are susceptible to these pump-and-dump schemes that can decimate value instantly.</p>
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<p>The post <a href="https://captainaltcoin.com/defi-giant-yearn-finance-scams-yfi-holders-as-250m-market-value-vanishes-in-minutes/" rel="noopener noreferrer nofollow">DeFi Giant Yearn Finance Scams YFI Holders as $250M Market Value Vanishes in Minutes</a> appeared first on <a href="https://captainaltcoin.com" rel="noopener noreferrer nofollow">CaptainAltcoin</a>.</p>

DeFi Giant Yearn Finance Scams YFI Holders as $250M Market Value Vanishes in Minutes

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