The crypto market’s losses extended into Friday, as the crash in a number of tokens linked to decentralized-finance (DeFi) applications gained momentum.
DeFi tokens, which gained considerable attention over the past year, were sent plummeting on Friday, among which include Galaxium, Crypto Village Accelerator, IDALL, and Moonjuice. Over the past 24 hours, each have lost over 50% of their value, while more prominent DeFi currencies, such as Uniswap and Chainlink, have lost 7% and 9%, respectively, according to data published by CoinMarketCap.com.
DeFi tokens and the apps that support their platforms recently became popular because they allowed users to trade, lend, and borrow from one another while foregoing intermediaries such as banks. However, the DeFi market has also suffered a number of vulnerabilities, such as fraud and code copy-and-pasting. The broader DeFi selloff began when the Titanium token, of which billionaire Mark Cuban was an early investor in, plummeted from a high of $65 to nearly $0 within a span of 24 hours.
The larger crypto market also lost momentum on Friday, as Bitcoin tumbled by more than 3%.
Information for this briefing was found via CoinMarketCap.com. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.