MarginFI’s Total Value Locked (TVL) dropped from $910 million to $518 million, just two days after its former CEO resigned, according to data from Defillama.
In an unusual move, Edgar Pavlosky, the protocol’s Founder and former Chief Executive Officer, announced on Wednesday, April 10, that he was stepping down from the top position and exiting the firm, its research branch, and everything related to the crypto project.
Pavlosky expressed his dissatisfaction with the project’s current operation model. He noted that, while the protocol’s team is a world-class standard, he doesn’t agree with the manner in which things are being done in the firm—internally and externally.
The former CEO stated that his actions are a statement of his intentions and principles. According to him, his primary focus revolves around creating value for society. He further stated that his attorneys are currently handling certain operations but declared that the crypto assets and funds are not a priority to him, compared to the conviction of value creation.
The MarginFI team has confirmed Pavlosky’s resignation and noted that it does not affect any of their services. They noted that his departure was a result of “internal operational disagreements” and “his own personal reasons.” They thanked him for his contributions and noted the project would continue to work towards its overarching goal of building a “decentralized source of yield for everyone, no matter where you come from, your credit score, or how much you have.”
The team further stated that the firm, core contributors, and its investors are actively participating in ensuring a smooth transition to the new leadership structure.
Following Pavlosky’s announcement, investors began withdrawing their investments from the crypto project’s portfolio, resulting in a 54.79% decrease in the protocol’s portfolio value within 48 hours.
Interestingly, Solend, a MarginFi competitor, is trying to take advantage of the situation. The platform invited MarginFi users who withdrew their assets from the protocol to move it to their own platform.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
