DeFi Traders Loses $15 Million After Being FOMOed to Eminence Protocol


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Traders in the Decentralized Finance (DeFi) have been ‘FOMOed’ (fear of missing out) into investing in Eminence protocol, an uncompleted project being developed by Andre Cronje, the founder of Yearn.Finance (YFI). Following the state of the project, a hacker was able to exploit the protocol draining millions of dollars already deposited into the project by the profit-hungry investors.

How Eminence Protocol Got Raked

Yesterday, Cronje took to his Twitter account to shared the progress and development stage of the Eminence protocol, which is being designed as a card gaming project. “We finished the concept behind our new economy for a gaming multiverse. Eminence. As per my usual methodology, I deployed our staging contracts on ETH so we can continue developing on it,” he noted.

Following Cronje’s series of tweets about Eminence protocol, it appeared that investors got too optimistic about it, to the extent that about $15 million was deposited into the contract in a short time. The overexcitement of investors probably follows the success of Yearn.Finance, which got famous due to the yield farming activity that promised to return investors a higher reward for their cryptocurrency assets.

Similarly, one of the DeFi traders who invested in Eminence protocol said:

“Just aped into $EMN. I still have no idea what it does or what its purpose actually is, but hey if @AndreCronjeTech is involved, I’ll degen in any day of the.”

However, unfortunately, the protocol was exploited by a hacker, who reportedly scooped all the $15 million deposited into the contract, only to return about $8 million to Cronje’s yearn: deployer account, a few hours after the incident. It remains uncertain why the hacker decided to return the $8 million. “Only the attacker would know the answer to that question,” said Cronje.

DeFi Community Blames Cronje For the Loss

Many industry experts, including the founder of Genesis Block, Mick Hagen, had blamed Cronje for the loss incurred by the investors. They argued that he shouldn’t have teased investors, knowing that the Eminence protocol wasn’t yet completed. Hagen asked:

“Andre deployed these contracts from the main ‘Yearn Deployer’ address. People watch his every move, every transaction. Why didn’t he use an alternative, non-followed address to deploy/test if these were indeed just ‘staging’ contracts?.”

On the other hand, the investors were blamed for jumping into the project too quickly. This concedes with the recent report that most yield farmers don’t know how to read smart contracts and are extreme risk-takers.

The post DeFi Traders Loses $15 Million After Being FOMOed to Eminence Protocol appeared first on BlocDesk.

Source: DeFi Traders Loses Million After Being FOMOed to Eminence Protocol

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