DeFi Degens Rush into YFI’s Andre Cronje’s Latest 100% Valueless Token, Despite His Warning Not To Do It
So, YFI’s Andre Cronje is back or maybe not.
Cronje’s official medium account yesterday introduced a 100% valueless token. In very clear, highlighted words, he clarified that it is not in the meme sense like the popular YFI token was launched as a zero value and supply governance token.
It won’t be used in the future but is for developers to figure out how to create the new distribution mechanism, the announcement read.
“Don’t put funds into it. I promise, I will create things for you to use your funds for, but this is not it.”
But degens didn’t care.
You absolutely deserve this. pic.twitter.com/JNfQDJaPr6
— Hsaka (@HsakaTrades) October 13, 2020
On one side, some believe the people putting all the money in these unaudited projects are at fault because Cronje has repeatedly told them not to. CMS Holdings wrote:
“I blame everyone involved in trading this thing and not Andre you have yourself to blame for shooting into this thing with half a second of due diligence.”
On the other side, others believe Cronje, who has had a cult-like following for YFI’s fair token launch, is at fault and seriously needs to make use of testnets. Some even have harsh words for him.
“People are being stupid” then dont give people an opportunity to be stupid,” said trader Loomdart.
Yeah, i was kinda (not really, still think he had alot of blame) defending Andre but at this point I'm convinced he's either 1) insanely stupid and has no idea wtf is going on or 2) insanely toxic and wants people to lose money for his own ego
— loomdart (@loomdart) October 14, 2020
While DeFi degens behaved like degens, the idea behind the project was to create a liquidity based inflationary token that can offset IL via liquid governance to achieve as much trading fee as possible and offset impairment loss.
The current design favors LP providers; as such, Cronje added a small tweak where while only 50% of tokens are only minted, the other half is taken from the liquidity pool itself.
90% of the new tokens to be provided to the liquidity providers while 10% to general holders.
“I believe that these tokens can become a liquidity bridge that couples together multiple exchange endpoints. The net result will be consolidated liquidity as well as further order book depth and within limits, IL offsets,” he said.
Fake Cronje Fighting the Fight!
Amidst all this, a Twitter account @andrecronjedev surfaced, which first came into existence on Oct. 5, that went on a tweeting spree yesterday, calling it a “shitposting account,” “dedicated to my dev notes and bad takes.”
@andrecronjedev account speculated to be fake, joked about launching an ETH competitor, APENET for people to ape in where numbers only go up. DeFi is not about finance; it’s just “a bunch of rich poker players and gamblers into an anonymous chat room” and all about pumping someone else’s bags, fake Cronje poked fun.
I'm launching a new ETH competitor, APENET, will have sparkster TPS, EOS funding, ADA research, and TRON marketing.
Everything you APE into will be 100% safe and protected, never any losses and numbers only go up.
— Andre Cronje (@andrecronjedev) October 13, 2020
While dissing the degens for getting the rug pulled, the fake Twitter account said one shouldn’t put in the money “if you don't like how things are done.” As for using the testnets, “why can't you stop yourself from sending funds into contracts?” the fake account further tweeted.
Wondering the same tbh.
He’s gotta know doing this has a net negative affect at this point.
It’s essentially a ponzi with insiders buying his vaporous experiments and dumping them on dumb money retail who think they’re speculating but are actually just greater fools. https://t.co/0KjR9BkaWL
— CryptoGainz (@CryptoGainz1) October 13, 2020
In the meantime, crowdfunding is going on to finance a lawsuit against Cronje and other team members on behalf of the Eminence.Finance victims that lost $15 million.
1/ We are crowdfunding capital to finance a lawsuit against Andre Cronje, Kirby and Banteg over the EMN scandal on behalf of the victims. If you want to hold them accountable, donate Ethereum (ETH) to 0xa4c8ab63F198bfd5a6a1366ddb5dbDd6D2d7bEF9$emn $yfi
— EMN Investigation (@EMNInvestig) October 10, 2020
For now, only 0.775743476 Ether worth nearly $300 has been raised by the campaign.