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- HEGIC’s price skyrocketed by more than 200% after Yearn’s Andre Cronje announced his support for the options trading protocol.
- Cronje and Wintermut of Hegic have announced an options trading product for ETH and wBTC.
Andre Cronje of Yearn has once again caused an overwhelming hype around a new project after him called the Hegic protocol, created by anonymous developer Molly Wintermut, “extraordinary technology”. Since Cronje’s approval, HEGIC’s price 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 was conceived as an automated market maker, requiring no KYCs, intermediaries or centralized entities.
The protocol is driven by liquidity pools and hedging contracts, which operate 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 protocol’s native token is HEGIC and was launched on September 9, 2020, in a bond curve contract, as Messari notes. Through HEGIC, users are encouraged to participate in protocol governance.
Three days ago Cronje announced that together with the developer of Hegic they have 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 posted a 200% year-to-date performance as shown below.
Source: https://twitter.com/MessariCrypto/status/1326272134625316873/photo/1
The legitimacy of the new Ethereum DeFi protocol
Cronje made public his full support for Hegic when he entered a long position with a call option for the Curve protocol CRV token bought at $ 0.46 with the stable DAI currency, as shown in the image below.
Source: https://twitter.com/AndreCronjeTech/status/1326828550608068608/photo/1
Cronje is known for creating the Yearn Finance protocol. The protocol’s governance token, YFI, caught 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, it deploys projects on the Ethereum mainnet that may have bugs or be incomplete while working on it. However, this did not stop many people from participating in its 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 is not insured. 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. Furthermore, the Monitor says no response to these concerns has been offered and adds:
Please note that trading this token on Uniswap is very dangerous right now, as anyone with more than $ 1 million of HEGIC (including equipment of course) can dispose of it, creating a “carpet” (scam) .
In this case, Andre Cronje’s participation in the project prevented the information platform from calling Hegic a scam. Furthermore, the contract and business related to Hegic “seem solid,” according to the “War on Carpets.”
⚠️ Warning Notice No. 1 – Hegic $ HEGIC (0x584bc13c7d411c00c01a62e8019472de68768430)
Reason: the total offer is 3 billion, or 3000 times the amount currently raised on Uniswap. Liquidity is not locked on Unicrypt.
Probability of losing all funds: high
DYOR. #WARONRUGS❌ #CryptoRedFlag
– # WARONRUGS❌ (@waronrugs) November 9, 2020
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