DeFi greediness got a new record breakdown for YAM
The big bubble of DeFi leads to a panic in the markets. YAM missed the train.
From zero to hero and back to zero in only 35 minutes. Or better from $60 Million back to $0 Dollar. A code error could not be fixed right in time and trust has turned into frustration. This is the old world trying to play a new game and wants to make the rules. They only can fail. Welcome to the Olympics games in Finance running for the newest trend. Creating a lending platform for rent out cryptos, tokens, against fiat or vice versa is always a high speculative business. The greediness in the tokenomy and the run for market capital becomes a farce for YAM. A code error was the reason for losing all the value. Believe it or not. No one trusts someone who can not fix a problem in minutes. DeFi hacks are a hot topic and fear is big but fear is eaten by money business. So the risk is denied until it happens.
Data from price site CoinGecko shows the total value of YAM collapsed from roughly $60 million at 07:40 UTC to $0 by 08:15 – barely 35 minutes later.
The price of YAM tokens, which peaked at roughly $167 at 17:30 UTC, had spiraled down to barely $14 at just before 08:00.
YAM Market Cap Source: CoinGecko
Having only launched Tuesday, YAM was a yield farming protocol where tokens were intended to keep parity with the U.S. dollar through loosening or contracting supply.
It's relative newness though meant the code hadn't been properly audited; a bug was soon discovered that effectively meant the protocol would keep printing "dud" YAM tokens that would prevent token holders from making any governance decisions.
A last-minute attempt to save the protocol ultimately failed and co-founder Brock Elmore pronounced the project dead at 08:01 UTC.
Yam's market cap went to zero moments later.
The project announced a plan to migrate to YAM 2.0 just before press time. Do you believe in bubbles? Here you have a very colorful. Read the full article here.