Algorand-based decentralized finance (DeFi) protocol has announced the closure of its platform. The project contributed more than 50% of Algorand’s total value locked (TVL)
With the cryptocurrency winter, many projects have had to shut down their platforms due to difficulties and the effects of infection. As the cryptocurrency market tries to recover from the winter, Algofi has announced that it is winding down operations.
Algofi is in withdrawal mode only
underground announce Close its platform and put it in withdrawal mode only. The team wrote on Twitter:
“Going forward, we can no longer provide the support necessary to maintain protocol at the high standards that we believe the community deserves.”
The team plans to end its operations in a “safe, clear and timely manner”. They said they would resolve any of the community’s queries about Discord.
According to Crunchbase data, Algofi has raised $2.9 million in seed funding in November 2021.
The future of Algorand (ALGO)?
Algofi contributed more than 50% to Algorand’s TVL. Even after the closing announcement, Algofi has a TVL value of $30.73 million, while the total TVL on Algorand is $58.77 million.
However, the community now prognosis on ALGO’s future as it will eventually be divested of more than 50% of TVL.
Read our full guide to Algorand here.
In January 2023, the Algorand ecosystem was trying to get out of the bear market. BeInCrypto reports that its TVL is up 123% in one week, and Algofi posted a triple-digit gain.
But on April 17, the Securities and Exchange Commission (SEC) deemed ALGO a security, and the price of the token has fallen by more than 50% since then.
As of this writing, ALGO is trading around 2020 levels of $0.1084.
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