YFI Ahead of the Curve: Proposal for 10:1 Split, Send it to the Moon
- The popular meme DeFi token YFI is currently worth nearly 1 BTC, trading above $11,000, down 2.3% from its all-time high of $11,400 set only today.
- And it is just a matter of time that this 47th largest cryptocurrency by market cap of $329 million will hit $20,000, $218 billion market cap BTC’s ATH before Bitcoin itself.
With YFI, as we reported, it is more than just speculation as to the money-making Yearn.Finance protocol is also growing fast with $643 million locked in it, an increase of 390% in just five days.
Besides the DeFi protocol working on new things like tokenized insurance, the governance token YFI is also ahead of the curve.
There is now an informal proposal for the YFI split in a 10:1 ratio (ySplit). The proposal is to split the token after the price exceeds BTC for ten days, and new ySplit would happen every time 1 YFI equals 1 BTC.
“This allows the community to rally around the meme and have a performance-driven goal forever,” said Spencer Noon, head of crypto investment fund DTC Capital.
Stock splits have been recently getting a lot of attention in the traditional market thanks to Tesla and Apple, whose share rallied on the back of the split.
Dark arts of behavioral economics
The world’s most valuable automaker Tesla saw its share prices surging eight times in the past one year while Apple’s more than doubled thanks to the share split announcements.
As such, in a bid to make individual shares more affordable, both the tech giants split their stocks in response to which Tesla stock is up over 30% and Apple’s spiked 24% adding $85.8 billion and $318.6 billion to their market value respectively.
Tesla will be splitting its shares 5-to-1 on August 28 while Apple opted for a 4-to-1 split two days after that. Analyst Mati Greenspan in his daily newsletter Quantum Economics wrote,
“It's a simple exercise in the dark arts of behavioral economics, which may seem like black magic to some, but really shows that the market is currently full of people with the same level of intelligence as Jen the Pizza girl who prefers a large pizza split into eight slices than 12 because she can’t possibly eat 12 slices of Pizza.”
Although such events are seen as bullish, they in themselves are not because the event doesn't add any value to the company, not more than that they usually happen during a bull market.
It “shouldn't change a thing in a world of fractional shares, but markets are often irrational with regards to stock splits,” noted trader and economist Alex Kruger. “So how about splitting YFI to send it to the moon?”