Andre Cronje Quits DeFi - For Real This Time

【TR; DR】

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One of DeFi’s most prolific and well respected pioneers has officially left the space - again.

Andre Cronje, better known for his contributions to Yearn Finance, has been accredited with superstar status in recent years. Playing such a pivotal role within any space comes with a price however, often leading Cronje to wish the space farewell - with a quick return often imminent.

Yet, this time it appears Cronje is intent on leaving behind the space - with no return in sight.

Who is Andre Cronje?

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If you haven’t heard of Andre Cronje, you’ve almost definitely heard of Yearn Finance. Renowned for its immense transformation from an essentially negligible token to $40,000 highs, earning it blue chip status, Yearn Finance is a certified big deal within DeFi.

Having worked across over 25 projects with his primary developer partner, Anton Nell, the pair have forged an ecosystem that has become inherent to the world of DeFi. Whether it be Multichain, Keeper Network, or Yearn Finance, the pair have built some of the most significant DeFi projects in existence, with seemingly no signs of stopping.

However, Cronje’s involvement with the likes of Yearn Finance have somewhat waned in recent years, with him drawing away from the space progressively, as well as his other projects. Leading him to formally ‘quit’ the blockchain space in March of 2020, following barrages of toxicity and hatred from the community. Unsurprisingly, he quickly returned, before making another dramatic exit in August - before returning again.

Yet this time Cronje and Nell’s combined activity appears different - as if these final months are their ultimate swan song to the blockchain world.

Why Did He Quit Again?

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This is the part that remains shrouded in mystery. Cronje is yet to confirm any specific reasoning behind his and Nell’s combined exit. Yet, the actions that will be taken in the coming months appear to be a worthy testament of their statement, with no signs of stopping in sight.

In a statement Nell regarded the situation as being a decision ‘that has been coming for a while now’, perhaps elaborating upon the evident frustrations of Cronje amidst his repeated retreats from the blockchain sphere. Yet, a statement isn’t all that Nell issued.

Confirming what to some may be the worst, was Nell’s confirmation of ‘roughly 25 apps and services’ related to the dynamic duo would cease operations and be terminated as of April 3rd. With thousands of collective users and millions of dollars poured into each respectively, this has unsurprisingly spurred panic throughout the DeFi space.

However, somewhat comfortingly, the likes of Yearn Finance, Multichain, and Keeper Network have already relocated to new domains, meaning that they will not bear the brunt of this sudden change. However, apps and services that are yet to migrate and are not governed by their communities have been thrust into jeopardy.

What Does This Mean For DeFi?

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What Nell referred to as ‘not a knee jerk reaction’ or a ‘rage quit’ consolidates the unease felt by stakeholders in Cronje’s biggest projects, as his exit could spell bad news for holders and users of Cronje’s extensive portfolio. Cronje’s involvement with countless projects across the DeFi space has resulted in a dramatic domino effect. With FTM (Fantom) plummeting, YFI tanking, and unrest rife - Cronje has plunged the market into unprecedented levels of fear.

In only a matter of hours following the consolidation, YFI plunged from $20,000 to $18,000, as holders scrambled to sell in light of the current changes. Having recouped some of its losses, YFI still appears to be teetering as panic and unrest run wild throughout the space. Attempting to ease this, core Yearn developer Banteg reminded holders via Twitter of Cronje’s limited involvement with Yearn for the past ‘year’ and that a team of 190 are instead fulfilling these roles. Fortunately, this has appeared to somewhat ease the distress surrounding the future of the $4 billion project.

However, it was the Keeper Network that witnessed some of the most dramatic repercussions, with the KP3R token almost shedding a third of its value in a plunge from $625 to $423 since the announcement. Perhaps more worryingly, the asset has continued to fall, leading it to trade haphazardly between the boundaries of $358 and $379.

If the Keeper Network fallout wasn’t a testament enough to Cronje’s influence across DeFi, the impact on the Fantom network certainly is. Fantom has bloomed in recent months, following Cronje and Dani Sestagalli’s collaborative efforts on the DEX protocol, Solidly. The native token, SOLID, sought to become one of the most widely distributed tokens to projects involved within the Fantom ecosystem, based upon the total value locked. Depending on the value and utility of protocols and projects, SOLID tokens were set to be distributed via various methods such as aidrops, staking rewards, yield farming, or whatever the project felt necessary.

Unsurprisingly, this drove investors wild. With billions of dollars pouring into the Fantom ecosystem, the Fantom ecosystem broke its all time high total market value as it soared to $15.21 billion. After trading horizontally for several weeks, rumours circulating in early March led to the FTM token falling notably, with the official confirmation only having further impacts on the total market value.

As quickly as they flooded in, Fantom investors have been quickly withdrawing tokens from projects, selling them and buying into other projects in light of current affairs. This ultimately has led to an almost 20% decline in value, with FTM skidding towards $1.31 following the incident.

It’s undeniable that Cronje has an overarching influence across the entirety of DeFi, yet one thing can be ascertained. April 3rd may be an immensely bearish and dark time within the DeFi sector.



Author：Matthew W-D, Gate.io Researcher
*This article represents only the views of the researcher and does not constitute any investment suggestions.
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