Yearn Finance’s Takeover Technique Pays Off And Reaches $30k

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Last Updated on 4 December 2020 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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One of the absolute success stories in business of these past few years to reach us from Silicon Valley came from Uber. The app, which is now in the top ten most downloaded pieces of software in the world, became a household name by underpricing the competition. And whenever a competitor proved too hard to price out, they would simply take him over. Over the summer, Uber acquired for example a company called Postmates for $2.65 billion in order to make it’s own market position for Uber Eats better.

Uber does these kind of “strategic acquisitions” regularly, certainly when it comes to expanding market share for it’s existing business. In recent months it paid $3.1 billion for Middle Eastern ride-hailing rival Careem (which proved more popular than Uber X in several middle eastern countries) and it bought a controlling stake in Latin American grocery delivery startup called Cornershop. All done in order to take out the competition and create a monster company of your own

Advertentie.

Crypto monopolies

By now, it looks like this business model seems to have taken over the world of crypto. Yearn Finance (YFI), still relatively new to the blockchain and crypto world, has already made several acquisitions of rival companies in the past few weeks (Pickle Finance and Cream v2), and supporters seem to like what the Andre Cronje team is doing.

As one of the so-called Blue Chips of DeFi, Yearn Finance has steadily climbed out of the summer slump that Decentralized Finance coins experienced and yesterday crossed the $30k mark for the first time in a month again, showing a clear upward trajectory on it’s graph. At this rate, the all time high of $40k could be reached by the end of the year. At the time of writing, YFI is trading at $28,875.

https://twitter.com/bantg/status/1334453107913338880

In the past few days, YFI has also announced it has started collaborating with Chainlink through it’s newest project Keep3r. Does Ethereum have a DeFi behemoth as a rival in the making?