DMG token holders take Twitter to grieve when their holdings crash 75 percent.
DeFi Money Market, one of the first ventures to put real-world assets into the chain, unexpectedly declared last night that it had “ceased operations.”
“As a result of regulatory enquiries, DMM is shutting down,” reads a message on the project website. “[…] DMM regrets the need for this action and would like to thank the DMM community for their support and active participation in this project.”
The website provided users with instructions on how to redeem yield-bearing mTokens, and confirmed that yields for tokens would fall to 0 per cent on February 10.
“We’re sure that you have questions, but unfortunately we are not able to answer questions at this time,” the statement adds.
The project also confirmed the shutdown in a pair of Tweets:
As a result of regulatory inquiries, DMM is ceasing operations. mTokens can be redeemed with interest accrued to-date through the following link: https://t.co/mWB1WacKaH
— DMM DAO (@DMMDAO) February 5, 2021
Together with RealT and other real estate tokenization projects, DMM was one of the first to attempt to add real-world assets to the DeFi landscape. They offered over 6% interest rates on their tokens backed by real-world car loans. The project was launched with the help of the custom-built Chainlink oracle and the support of the billionaire investor Tim Draper.
Some have suggested that the regulatory scrutiny alluded to by the team in its announcement could be related to the launch of its botched token. Shortly after their token sale, there were rumours that documents posted by the company to show that the loan backup unintentionally exposed the identity of the borrowers.
Now that $DMG has collapsed, can probably say.
Last March when they first launched they uploaded a bunch of lien docs to their site and didn’t protect people’s names and addresses.
I reported it to them and they “fixed it” but the originals are still on @IPFS
— Colin Platt (@colingplatt) February 6, 2021
The announcement led to a precipitous fall in the DMG governance token of DeFi Money Market. DMG is currently trading at $.093 cents after dropping from $.53 last night.
There may, however, be some hope for the holders. In DMM’s announcement, the project claimed that “an additional fund of available assets is being set up to facilitate the redemption of DMG tokens” and that more information on this fund will be “followed.”
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