Algofi, the largest decentralized finance (DeFi) protocol of altcoin Algorand (ALGO), which the SEC describes as a security in lawsuits against Binance and Coinbase, announced that it will cease its operations.
Algofi said in a statement that “withdrawal only mode” will be on, and that they will close all social media accounts except Discord.
Stating that Algorand's belief in the power of blockchain technology and the new consensus algorithm remains strong, the Algofi team said that they expect the liquidation process on their platform to take several months.
“We have some unfortunate news to share regarding the Algofi protocol.
After much thought, the team made the unfortunate decision to liquidate the protocol.
The team believes we can no longer provide the support necessary to maintain the protocol to the high standards we believe the community deserves.
We will begin to shut down the platform and put the platform in withdrawal only mode.
…”
With the rally in 2023, the value of locked assets in Algofi, which left rival DeFi platforms behind, had increased to $ 200 million in February. However, with a sharp decline, it fell to the level of 59 million dollars.
This decline was also supported by the fact that ALGO was a security in the lawsuits filed by the SEC.
While the Algorand Foundation did not accept these claims of the SEC, the ALGO price fell to the levels of $ 0.90, which is not seen since 2020.
ALGO is trading at $0.1098 at the time of writing.
*Not investment advice.