The Cronje Effect

Before the summer of 2020, not even the most diehard cryptocurrency players would have heard the name, Andre Cronje.  The biggest figures and communities in cryptocurrency generally tend to adopt nicknames or monikers that have been lovingly or ironically bestowed upon them by the communities and projects that they champion.  Figures such Changpen Zhao (CZ from Binance) and the Ethereum Mafia (creators of Ethereum incl. Vitalik Buterin, Gavin Wood, and Charles Hoskinson) have set the stage for the man who is arguably the single most famous person in the contemporary cryptocurrency world, Andre Cronje.

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What was it exactly that propelled Andre Cronje to such notoriety?  Andre’s list of projects and associations is growing by the day, but his early meteoric rise to fame can be attributed to the explosive success of yearn.finance (YFI).  Although YFI saw no major attention until the DeFi boom was already kicking into high gear, it was revolutionary in its tokenomics, utility, and development.  YFI saw no fundraise, no Dev/Team allocation of tokens, and was completely fairly launched.  Every single token of the total supply of 30,000  was mined and distributed to the community that invested and developed it despite the risks involved.  Although somewhat commonplace in today’s DeFi ecosystem, YFI introduced a yield farming aggregator, which served to move crypto assets around various interest bearing protocols with the goal of jumping to the highest daily possible ROI.  Interest rates in DeFi by and large, are variable based on the ratio of borrowed and lent funds, but by adding funds to the protocol, you could sit back and let the code find the best place to put your money to work. The yearn protocol searches for the highest yield pool amongst a slough of different options, deposits the entirety of pooled assets, and begins to print an over growing stream of yield . 

YFI Price Chart

YFI 1 Month After Launch

To put it simply, Andre had birthed the golden goose. 

Investors quickly took notice and the value of the governance token (which gives voting rights that dictate actions taken by the protocol) absolutely exploded in market valuation.  Despite firm statements from Andre that the token itself “has 0 financial value”, speculative investors quickly bought up as much as they could hold while simultaneously moving up their Lambo Dealer appointments.  

cronjelambo

cronjelambo

Andre Cronje had arrived full stop and the world had taken notice.  

It should come as no surprise that the talented developer would quickly come to embody the dream of every single entrant into Cryptoland; the 1000x.  Wherever Andre went, money followed him like a dollar bill tied to a piece of string.  The insurance protocol, COVER, gained overnight fame when Andre attached himself to the project as an advisor and bestowed them with a sizable development grant.  The smart contract platform FANTOM saw similarly short lived growth when hungry speculators learned that he was involved with the platform as a technical advisor.  Every single twitter mention and protocol component that was developed by or given the AC stamp of improvement, saw a wild influx of funds.  Andre had become the de facto authority on profitability in cryptocurrency and as the human YFI protocol, a few clicks of his keyboard would effortlessly shuffle millions of dollars.

However, as it is with all cryptocurrencies, gravity eventually takes hold.  With Cronje-stock at an all time high, his latest pet project, Eminence (EMN) saw an exploit attack drain 15 million dollars in locked funds belonging to DeFi investors.  A correction had finally arrived and sent Cronje-stock plummeting back down to solid ground.  In the wake of the outrage, undeserved vitriol, and death threats that followed, Andre decided to abandon his publicly doxxed ETH address and steer clear of social media, while he attempted to fade into the background. The markets, desperate to fill the void left by his departure, turned to mere forks and code clones of the still living golden goose.

Although Andre was out of the public eye with no announced plans of making a return, he never forfeited his interest in DeFI and was all the while developing in secret. BTC momentum swung from bearish to bullish in October and as investors finally began recouping their losses and rebuilding, Andre quietly released his next project, Keep3r Network, into the world on October 28th.

The first moments after release were slow, almost as if investors weren’t sure if this was one of the many rugpull scams that pollute the ecosystem.  ETH buys trickled into Uniswap like a rubber band pulled back, gaining tension with every buy… and then it was released.

KP3R was released around $1 per token but within a single 12 hour time frame, had peaked over $220.  Andre had done it again!  The crypto wunderkind was back in 6th gear, pumping out updates and fixes to his project every so often and dropping teasers on twitter of things to come, with the Decentralized derivatives exchange entitled Deriswap coming soon down the development pipeline.  The Crypto community began taking watch again, eagerly anticipating the next guaranteed opportunity, but instead of a new token, the next opportunity came in a recently soured project, Pickle.finance, which had only 3 days ago suffered an exploit seizing 19.7 million in DAI.

pickledip

picklesip

There is no question that Andre Cronje holds incomparable influence within the community and his acclaim is well deserved.  No individual has contributed as much to cryptocurrency in this cycle as Andre Cronje and the least that we as investors can do to repay him for his dedication and commitment to blockchain development (and our portfolios) is to recognize the effect that he has.

With Cronje-stock currently at an all time high, I call upon the community to give the appropriate recognition to Andre. So what do we call this alluring influence that Andre brings?  The Cronje Effect?  The Midas Touch? Receiving the blessings of Crypto Jesus? 

I cannot rightfully decide such a thing on my own, so I will do as Andre has done and leave the decision in the hands of the community.

May we, as the chosen among all of Andre’s Apes, all continue to benefit from his good works, protect us from rugs, and gather unto him as he reaches down from the moon to bless us with the touch of digital gold.