Andre Cronje Jeopardize Billion dollar Defi project

• Andre Cronje and Anton Nell have stepped down from his role as a “contributor” to the Defi- caused user cash to vanish from liquidity pools.

• Nell announced the decision by saying that about 25 decentralized finance (Defi) programs will be “terminated” beginning April 3.

Andre Cronje has stepped down from his role as a “contributor” to the Defi and cryptocurrency industries, only days after his new project was criticized for a security issue that reportedly caused user cash to vanish from liquidity pools.

Resign that made market plummeted

According to a tweet made on Sunday, Cronje, the well-known author of Yearn Finance and Keep3r, resigned together with Anton Nell, a fellow Fantom software architect, and long-time collaborator.

Nell announced the decision by saying that about 25 decentralized finance (Defi) programs will be “terminated” beginning April 3.

Yearn Finance and Keep3r Network, Bribe Finance, Solidly (a new initiative that went online on Feb. 24 and locked in a total value of $2.24 billion in three days), and others are among them.

Cronje’s abrupt exit, according to analysts, might cost investors billions of dollars.

The fall of Defi tokens 

BeInCrypto reached out to Andre Cronje for comment, but he did not answer.

Following the revelation, the value of tokens related to the developer plummeted. According to CoinGecko statistics, the Yearn Finance coin, YFI, fell 13% to $17,719 but has since recovered.

SOLID, the primary token of Cronje’s new Solidly Exchange system, has dropped 66% to $1.14 as of this writing. Fantom (FTM) has down 16% to $1.40.

Since Cronje’s alleged departure on March 3, the total value of assets handled under the Fantom protocol has dropped by more than $4.4 billion.

According to statistics gathered by DefiLlama, Fantom’s total value locked has plummeted 15% to $6.93 billion in the last 24 hours.

Cronje’s departure might cost billions of dollars, far more than the Dani Sesta fiasco.

Cronje’s resignation sparked rumors on Twitter on March 5 when edits to his LinkedIn profile revealed he had departed Fantom Foundation, Yearn Finance, and the Ethereum local community.

Cronje canceled his Twitter account without explanation earlier this week. Fantom’s CEO, Michael Kong, said that the developer was withdrawing from public life “for the time being” due to “too much hatred.”

Some analysts have warned that billions of dollars in investor capital might be jeopardized as a result of the scenario.

“What are the consequences of ‘terminating’ active projects in which people have invested?” asked Shivasak Huja, a crypto expert.

There are security concerns

Cronje’s decision to leave Defi comes less than a week after several users claimed that a flaw in the Solidly Exchange smart contracts caused cash to vanish from liquidity pools.

Users may have lost hundreds of thousands of dollars on the platform by transferring assets. Cronje denied the charges, emphasizing that no money was lost as a result of the process.

He asserted at the time that “no smart contract issues have been detected in any of the live contracts,” blaming users for “trading via pairs that don’t have liquidity.”

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Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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