Satoshi Nakamoto proved a pseudonymous founder doesn’t have to be a deal breaker. Blue Kirby, however, has reminded cryptocurrency investors that fake names can still be a red flag. 

For those who didn’t spend last weekend on Crypto Twitter, Blue Kirby is the handle of a now-infamous figure in the decentralized finance (DeFi) community who appears to have absconded with some $1 million worth of ether (ETH).

As detailed in two worthwhile reads, DeFi community members allege Blue Kirby unfairly exercised influence over the Yearn.Finance ecosystem and then conducted a questionable initial coin offering (ICO) for a non-fungible token (NFT) marketplace called “Off-Blue.”

While the above sentence may sound to normies like so much word salad, the Blue Kirby fiasco marks the latest in a series of cautionary tales from 2020’s “DeFi Summer.” The episode shows how – absent compensating factors – permissionless technology, pseudonymous identities and borderless marketplaces can make a combustible mix. 

Without skin in the game, Blue Kirby had little incentive to act in community members’ best interest in the long term, crypto industry members said. And without a real name, they now have little recourse.

Out of the blue

According to Set Protocol’s Anthony Sassano, Blue Kirby created his online persona in the early summer months, riding on the back of Andre Cronje’s wildly successful robo-crypto hedge fund Yearn.

The pseudonymous token cheerleader quickly rose through the ranks of DeFi community members on Twitter as witnessed in community allocation of $7,000 per month for his tireless promotion of the YFI token.

Blue Kirby’s poor judgment came to light over time, beginning in late September with the botched release of Cronje’s Eminence, a new DeFi contract. Although Eminence had yet to be audited – as fits Cronje’s tagline: “I test in prod[uction]” – Blue Kirby encouraged users

Members of the decentralized finance (defi) community are upset with Yearn Finance founder Andre Cronje over the mishap with Cronje’s secret Eminence (EMN) project. The Eminence protocol gathered $15 million before the project was ultimately hacked before the official launch.

According to a recent blog post published on Medium, a group of defi community members plan to sue Yearn Finance founder, Andre Cronje, and fork YFI as well. As news.Bitcoin.com recently reported, there’s been a lack of trust in Cronje’s work since an undercover project that didn’t even launch was drained for $15 million in funds.

The project was called Eminence (EMN) and after the incident, Cronje said he was lying low from social media.

“We are crowdfunding capital to finance a lawsuit against Andre Cronje, Kirby and Banteg over the EMN scandal on behalf of the victims,” explains the blog post written by the group dubbed ‘EMN Investigation.’ The team added:

Andre Cronje, the founder of Yearn Finance, hyped a surprise launch. Eminence Finance contracts were deployed by the Yearn Finance deployer, and Andre tweeted and retweeted as liquidity flowed in.

The investigation team says that Kirby, the head of communications at Yearn Finance, gave instructions on how to leverage the contracts and promoted Eminence prior to launch.

The group also accuses the Yearn Finance developer, Banteg, of “selling tokens bought from the contract to Uniswap right until the contracts were hacked.”

“The hacker drained the entire $15 million that had been locked up in liquidity by using a flash loan exploit,” the EMN investigation team detailed. “The hacker then returned $8 million to Andre, and was misappropriated.” The seething blog post is also filled with screenshots, tweets, and market charts that aim to bolster the group’s argument.

The investigation group is asking for ETH donations to

In the past 72 hours, Yearnfinance (YFI) surged by 58% after dropping to as low as $12,260 at a few exchanges. 

Three factors that may have catalyzed the sharp rebound are: YFI had become deeply oversold, lead developer Andre Cronje’s deep commitment to the project and the ever expanding use cases for YFI within a large ecosystem.

YFI was deeply oversold

Over the past month DeFi tokens endured a brutal correction which saw the value of many DeFi tokens drop by 40%-70%. The sell-off appears to be primarily led by corrections in Bitcoin (BTC) and Ether (ETH) but now that BTC has turned $11K to support, traders are watching to see if YFI and other tokens will continue to rise higher.

YFI/USDT daily chart. Source: TradingView.com

As Cointelegraph reported, the strong fundamentals of the top DeFi projects was a hint that the market was oversold.

At the time data showed that revenues of most DeFi protocols were actually increasing while token prices fell sharply, indicating that they are likely below fair value.

Revenue change versus token price change of major DeFi networks. Source: Twitter.com

Yearn.finance, as an example, has been on the cusp of releasing the second version of its vaults.

Typically, major product launches and updates would cause the underlying token to rise but the overall weakness in the DeFi market caused YFI price to drop lower throughout September and October.

The total value locked across Yearn.finance products is also hovering above $900 million. This indicates that almost $1 billion worth of capital has been deployed across the Yearn.finance platform.

Total value locked in Yearn.finance. Source: Stats.finance

Andre Cronje assures the community he is not leaving

In the past week there have been rumors that lead developer, Andre Cronje, is leaving the Yearn.finance project after hackers managed to siphon