Algofi, DeFi Protocol Announces Closing Of All Social Media Accounts Apart From Discord

AlgoFi, the largest DeFi in the Algorand ecosystem, announced the closure of social media accounts. (Photo; Doc. screenshot of Twitter account)

JAKARTA - The largest decentralized financial protocol (DeFi) in the Algorand ecosystem, Algofi, has announced its closure of its operations. Algofi will enter a "special mode of withdrawal" and close all of its social media accounts, except the Discord channel. This closure has led to a decline in ALGO's Total Key Asset Value (TVL) on the Defilama platform.

Algofi, which is the leading DeFi protocol in the Algorand ecosystem, took the decision to stop its operations. The team behind Algofi realized that they could no longer provide the necessary support to maintain the protocol's high standards, as stated in their blog entitled "Algofi Community Update" on July 10.

Although Algofi has managed to raise 2.8 million US dollars (Rp42 billion) in 2021 with participation from well-known companies such as Coinbase, Y Combinator, and Jump Crypto, they face difficulties in maintaining the level of support needed to maintain the quality of their protocols.

Following the announcement of this closure, the value of assets locked in the Algorand network has decreased by more than 5 percent, amounting to 59.03 million US dollars (Rp890 billion). This makes Algorand one of the projects with the largest decline in value in the last 24 hours, according to data from Defilama.

The closure of the Algofi occurred at a time when the original cryptocurrency Algorand, ALGO, was facing regulatory oversight. The US Securities and Exchange Commission (SEC) classified ALGO as a security in a lawsuit filed against Binance in early June.

Nevertheless, ALGO is still showing resilience in the market with an increase of 0.59 percent in the last 24 hours. The crypto community will continue to monitor this development, pending further response from Algorand CEO Silvio Micali regarding the closure of Algofi.