Yearn’s Cronje promotes HEGIC, price skyrockets by 200%

November 12, 2020 John Ethereum 0

  • The price of HEGIC skyrocketed by over 200% after Yearn’s Andre Cronje announced his support for the options trading protocol. 
  • Cronje and Hegic’s Wintermut have announced a product for option trading for ETH and wBTC.

Yearn’s Andre Cronje has once again caused an overwhelming hype around a new project after he called the Hegic protocol, created by anonymous developer Molly Wintermut, “amazing tech”. Since Cronje’s endorsement, the price of HEGIC has skyrocketed.

Hegic is an on-chain peer-to-peer protocol that allows its users to trade options on Ethereum, according to the profile created by Messari. The protocol was launched on February 20, 2020. Like Uniswap, Hegic has been conceived as an automated market maker, requiring no KYC, intermediaries, or centralized entities.

The protocol is driven by liquidity pools and hedge contracts, operating as an options trading platform for buying or selling ETH or Wrapped Bitcoin (wBTC) options. Users can also participate as a liquidity provider to earn settlement fees. The native token of the protocol is HEGIC and was launched on September 9, 2020, in a bonding curve contract, as Messari notes. Through HEGIC users are encouraged to participate in the governance of the protocol.

Three days ago Cronje announced that together with the developer of Hegic they created a method to trade options for any Uniswap trading pair to form generic call and put options. Since then, HEGIC’s price has made significant gains and has recorded a 200% YTD performance, as shown below.

Ethereum ETH

Source: https://twitter.com/MessariCrypto/status/1326272134625316873/photo/1

The legitimacy of the new Ethereum DeFi protocol

Cronje made public its full support for Hegic when he entered into a long position with a call option for the CRV token of the Curve protocol purchased at $0.46 with the stable currency DAI, as shown in the image below.

Ethereum ETH

Source: https://twitter.com/AndreCronjeTech/status/1326828550608068608/photo/1

Cronje is known for creating the Yearn Finance protocol. The protocol’s governance token, YFI, attracted the attention of investors when it surpassed $30,000 “before Bitcoin“, as noted by members of the crypto community.

Cronje uses a particular development method, “test in prod”. Therefore, he deploys projects on Ethereum’s mainnet that may have bugs or be incomplete while working on them. However, this has not prevented quite a lot of people from participating in his experiments, causing unwary users to lose money.

According to Waronrugs, the Rug Pulls Monitor, the log contains a warning because HEGIC’s supply is $3 billion and uninsured. This means that it is vulnerable to being dumped on the market. The monitor further warns that the probability of this happening is high. The Hegic team has almost the entire stock of the HEGIC token. In addition, the Monitor claims that no answers to these concerns have been offered and adds:

Please note that exchanging this token at Uniswap is very dangerous at this time, as anyone in possession of more than $1 million HEGIC (obviously including the equipment) can dispose of it, creating a “carpet” (scam).

In this case, Andre Cronje’s participation in the project has prevented the information platform calling Hegic a scam. In addition, the contract and the activity related to Hegic “seem solid”, according to the “War on rugs”.