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Without a doubt, this Monday was quite interesting for many operators of the main crypto markets, since in addition to the enthusiasm present for the rise seen in the main cryptocurrencies at the same time as Bitcoin exceeded USD $ 12,000 per unit, there was a case that attracted particular attention among those who closely follow the cases of the main winners and losers of the ecosystem.
This time it is about the token Yearn.Finance(YFI), which is trading above USD $ 6,178 per unit at the time of publication, being this the digital currency with the highest commercial value after Bitcoin. Likewise, OFFICERS increased more than 50% in the last 24 hours.
Datasheet
Name: Yearn.Finance
Symbol: OFFICERS
Link in CryptoMarkets: Yearn.Finance (OFFICERS)
Function: Collateral asset DeFi / Governance Token
Creator / s: Andre Cronje
Responsible organization: Yearn.Finance
Release date: July 22, 2020
Type of issue: Finite (Maximum cap = YFI 30,000)
Total current: OFFICERS 29.950 (10/08/2020)
Network on which it operates: Ethereum (token ERC-20)
Highest Price Achieved: USD $ 7,112 on average today 08/10/2020 at 6:14 am (New York time)
Capitalization market as of 08/10/2020: USD $ 183 million (USD $ 216 million the highest)
Ranking in the market by capitalization: #64
Logo:
On Yearn.Finance
Yearn.Finance is a proposal for the creation of a decentralized ecosystem specially directed for protocols DeFi, in order to optimize the loan services used by platforms such as Aave, Compound, Dydx y Fulcrum.
Who operate through Yearn.Finance, have their funds in guarantee to create YTokens, whose balances are subjected to constant analysis to choose the loan services DeFi more profitable, leading users to operate with the protocol that is most profitable for that moment.
Regarding the token OFFICERS, unlike others within the ecosystem DeFi, This has a fairly small limited issue, and will only be distributed to users who provide liquidity with YTokens. According to information published on its website, the token OFFICERS It works very centrally, although ecosystem decisions require approval by at least six of the nine participants running the protocol, as the funds are in a multi-signature wallet.
According to the development team on its website, the project is still in beta, so they will soon make announcements associated with the functions of the ecosystem and the operability of the protocol DeFi.
Commercial evolution
As such, the token OFFICERS began operating in the main markets since July 22 of this year, being one of the most successful digital assets in just its almost three weeks of commercial operations. By that time, each token was trading at an average of $ 830 per unit.
Three days after its launch, the token revalued significantly and exceeded the barrier of USD $ 4,000 per unit, and later, on August 6, it was above USD $ 5,000.
However, the reason why the token today OFFICERS It became known because between 5:20 a.m. (New York time) and 6:05 a.m., the token increased more than USD $ 2,500 per unit, trading at its highest value in history, reaching USD $ 7,112. This increase translates into a revaluation of more than USD $ 6,280 with respect to its beginnings, with more than 800% in profits.
As we indicated in the price report published today August 10, market data reflect that the greater volume of operations is capitalized in exchange MCX, in which around USD $ 15.8 million were moved between yesterday and today, which were mostly made with Tether (USDT).
Beneficial or harmful?
But the question that many ask themselves is whether this type of case is really profitable beyond taking advantage of the fluctuations present in very short periods of time.
In the case of Yearn.Finance, Those who were able to take advantage of the increase that took place shortly before 6:00 am, certainly derived gains of over 60%. However, since the market is mainly occupied by investors who trade short, At the time of publishing, the price of the digital currency is falling again, reaching close to USD $ 6,000.
Although the evolution of the token in a much longer term is not entirely clear, the invitation is to be very careful with coins that accumulate prices in very short periods of time. Generally, in these cases, investors who see the opportunity usually estimate acceptable profit margins, and schedule their exit once the value of the same exceeds certain levels established to ensure their profits.
This generates a kind of domino effect, and motivates many others to leave before a possible fall, which ends up unleashing this type of reactions and especially harms those who invested during the peaks, who are the ones who register the most pronounced losses as it happened in the case of Bitcoin in late 2017 and early 2018.
Recommended reading:
Source: CryptoMarkets DailyBitcoin / Defipulse / Yearn.Finance Website / Blog Yearn.Finance
Article by Angel Di Matteo / DailyBitcoin
Main image of NASA-Imagery and Pixabay
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