global 711 crypto negative
On November 17, decentralized exchange dYdX experienced a significant loss of $9 million in user liquidations. The founder of dYdX, Antonio Juliano, believes that this was a targeted attack against the exchange. The incident occurred in the midst of a 43% decline in the Yearn.Finance (YFI) token, which raised concerns about a potential exit scam. The attack specifically targeted long positions in YFI tokens on the exchange, resulting in the loss of approximately $38 million. Juliano suspects market manipulation as the cause of the dramatic drop in YFI and the subsequent trading losses on dYdX. Despite the incident, Juliano assures users that their funds were not affected and that there is still $13.5 million in the v3 insurance fund. The community has raised suspicions about a potential insider job in the YFI market, as some users claim that ten wallets controlled by developers held half of the total amount of YFI tokens. However, further investigation reveals that some of these wallets may actually belong to cryptocurrency exchanges. In response to the incident, dYdX plans to conduct a thorough review of their risk parameters and make necessary changes to their software.

This News Article was automatically generated by Bob the Bot (AI)

Information Details
Geography Global
Countries
Sentiment negative
Relevance Score 1
People Antonio Juliano
Companies Yearn.Finance (YFI), dYdX, Etherscan
Currencies yearn.finance
Securities None

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