DeFi Market Update: SAFE goes through one of the most brutal pump and dump in recent memory
- Yieldfarming.insure initially gained traction following endorsement by Yearn founder Andre Cronje.
- The project will now be migrating to a new token that’s untouched by whales.
Yieldfarming.insure (SAFE) is an insurance farming DeFi token that has come under the spotlight for its internal drama and massive pump and dump. Over the last three days, the price went up from $500 to $4,235 before dropping to $424.50
What is Yieldfarmin.insure?
SAFE aimed to be a new farming token that allowed farmers to buy coverage on their staked assets. In return, stakers receive $SAFE tokens for their services. yInsure offers two types of cover currencies - ETH (Ethereum) and DAI. The reward rate for these pools is calculated via “adjusted cover value.”
The project gained a lot of traction early on due to comparisons with YFI and NXM.
Getting serious $YFI vibes from $SAFE right now.
— Anthony Sassano | sassal.eth (@sassal0x) September 15, 2020
Watching it closely.
And farming it too of course
However, things really picked up when Chef Insurance, the developer behind the project, revealed that they received a $25k grant from Yearn founder Andre Cronje.
But is you know who involved or no ?
— ghostrideralltheway (@ghostriderallt1) September 14, 2020
Trouble in Paradise
Things started to unravel when prominent community member and investor Azeem Ahmed got accused of various unethical actions by Chef Insurance. As per the dev, Azeem had plans to maximize SAFE profits that would have been detrimental to the whole community.
Important: Honesty and Transparency
— Cooking with Insurance (@chefinsurance) September 16, 2020
Read: https://t.co/XfdjY4lTUt
Azeem then took to Twitter to make his case, saying that Chef Insurance didn’t have the experience needed to head the project, which led to a breakdown in their working relationship.
— Azeem (@AzeemFi) September 16, 2020
Eventually, all this internal drama led to a catastrophic pump and dump.
SAFE Migration
Following the pump and dump, Chef Insurance has reached out to the community for a possible solution to the crisis. It looks like the project will now be migrating to a new token that’s untouched by whales.
What to do with $SAFE tokens?
— Cooking with Insurance (@chefinsurance) September 16, 2020
Migrate = each SAFE will be redeemable for a certain number of the new token we will release AFTER our product is out.
Snapshot = a snapshot will be done at certain time and you will receive the new token based on your holdings of SAFE
Reaction
There has been a lot of negative reaction in the community in the wake of all the drama.
Jumped the gun on this one but I'm not going to delete the tweet :)
— Anthony Sassano | sassal.eth (@sassal0x) September 16, 2020
My vibes were, admittedly, wrong - I'll own that.
Though this is why I just farm these things instead of buying them - that way the losses are, at worst, the gas fees (unless you're farming with LP tokens kek). https://t.co/mscQrX3Siq
However, after Chef Insurance came clean, he seems to have gotten back a bit of the community’s confidence. When all's said and done, this will be another chapter of the incredibly wild DeFi era.
Author
Rajarshi Mitra
Independent Analyst
Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.
