XRP on Flare Network: A Major Prediction By a Bank of Japan Insider Is Coming True

Crypto commentator Pumpius (@pumpius) recently posted two images on X showing official statements from Flare Network and Aave. Both protocols had frozen or paused yield-related products. Pumpius expressed his surprise at their actions and wrote, “THE WAVE IS HERE. HE DID IT AGAIN!”

The “he” in question is Yuto Kanzaki, a pseudonymous figure who claims insider knowledge of the Bank of Japan. Days earlier, Kanzaki had posted a warning directed at the crypto market.

The translated message read, “A massive wave is about to hit projects related to ‘yield (returns).’ Many of them will end in collapse.” That prediction now looks prescient. The trigger was a $292 million exploit of KelpDAO.

What Yield Means in This Context

Yield in DeFi refers to returns earned by depositing or locking crypto assets into protocols. Users supply tokens to platforms like Aave, which lend those assets to borrowers.

The supplier earns interest. Other protocols, like KelpDAO, go further. They issue liquid restaking tokens that generate yield from multiple sources simultaneously, including Ethereum staking rewards and other services.

The KelpDAO Exploit

KelpDAO operated a cross-chain bridge powered by LayerZero. On April 18, an attacker exploited that bridge. The attacker manipulated the cross-chain messaging system to mint 116,500 rsETH tokens without proper backing.

Those tokens were then used as collateral on lending platforms to borrow real assets. The attacker converted approximately $250 million of the proceeds to ETH before routing funds through Tornado Cash. KelpDAO paused its contracts shortly after the drain began, blocking follow-up attempts.

Flare and Aave Respond

Flare published a statement confirming it had paused FXRP cross-networking via OFTs between Flare, Ethereum, Base, and other supported networks “while the rsETH incident is being investigated.” Users holding FXRP on non-Flare networks cannot redeem during the pause.

Aave confirmed on X that “the rsETH markets on Aave V3 and Aave V4 have been frozen.” The protocol clarified that “Aave’s contracts have not been exploited, and this is an exploit related to rsETH.” Freezing the markets prevented new deposits and borrowing against rsETH collateral while the situation was assessed.

What Kanzaki Said

Kanzaki’s warning did not name specific protocols. It pointed to a category. “No matter how varied the causes may be,” he wrote, “the outcome remains the same.” His post told readers to protect themselves.

Many market participants, such as Pumpius, see the Flare and Aave announcements as confirmation. The images he shared showed two major platforms reacting in real time to a single point of failure cascading across the DeFi yield ecosystem.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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