Andre Cronje needs no introduction in the crypto space. The founder of Yearn.Finance, Keep3R and Fantom is often referred to as the Godfather of DeFi. This is largely due to his numerous and significant contributions to the space. It is, therefore, understandable that the crypto space was hit hard by the announcement of his exit from the space. The crypto universe is still reeling from the shock as dozens of tokens take a tumble in value.
Complex relationship with DeFi
Cronje can be described as a DeFi architect. He rose to prominence in the sector as the founder of Yearn.Finance. With the help of fellow builder Anton Nell, he developed various projects and has contributed a great deal to the space. However, his relationship with DeFi has always been complicated.
Through his blog, Cronje has repeatedly attacked the DeFi community. In 2020, he wrote a notable blog entitled ‘Building in DeFi sucks.’ He was back a year later with another rant on DeFi. This time he warned entrepreneurs about how DeFi projects took years to come to fruition. He tells of receiving hostile messages from people trying to put pressure on him to complete his projects.
While Cronje’s protocols have been worth billions in value, some have also suffered millions of dollars in losses as a result of hackers. He has also been known to take several months in sabbaticals from crypto space.
Swift Fallout
With his love-hate history with De-Fi, one would think that the latest exit by Cronje and Nell is just another gimmick. However, Nell has stated that this exit was indeed final but a knee-jerk reaction. It seems the crypto space is taking Cronje and Nell at their word. The value of dozens of tokens came crashing down following the exit of the two.
Nell’s farewell post on Twitter states that many websites and projects the pair working on or managing would be shut down following their departure from the crypto space. 25 DeFi applications would be terminated starting in April. Amongst the projects to be abandoned are Yearn.Finance, Solidly and Keep 3R Network.
It is not surprising that the native tokens on these platforms nose-dived in value just hours after the announcement. For example, the YFI token collapsed slightly more than 13 percent since the exit was announced. This token garnered a lot of attention in 2020 following a massive rally. However, it has since plunged into what many would term as obscurity in the crypto space.
SOLID token dropped more than 60% in value within an hour of the announcement despite the fact that it is amongst the few projects that will remain operating. Fantom (FTM) also dropped by 13% in 24 hours after the announcement.