Home Coins Ethereum (ETH) Defi Implosion: YAM Token Market Cap Plummets to Near Zero After Founder...

Defi Implosion: YAM Token Market Cap Plummets to Near Zero After Founder Claims He ‘Failed’

1597272304 211 Bitcoin and Gold Correlation Reaches Record High 70 Bolstering BTCs

Yield farmers excited about the recent decentralized finance (defi) project, Yam Finance, got a rude awakening after the token’s value plummeted in value to near zero. Yam Finance developers discovered a major flaw in the rebasing contract and at 4 a.m. ET, cofounder Brock Elmore tweeted that he was sorry he “failed.”

On Wednesday, well over $500 million funneled into the defi project Yam Finance. More than $120 million kept funneling in after the developers found a bug in the smart contract. After the bug announcement, the YAM token’s value dropped significantly as the token touched an all-time high of $167.66 per token. At the time of publication, the token is only worth $0.97 per YAM.

The token launched on Tuesday and almost immediately massive amounts of crypto got tossed at the yield farming platform. The tokens were supposed to keep value with the USD by using an elastic supply inspired by the Ampleforth defi project.

A lot of people complained that the codebase wasn’t audited and that raised flags for certain individuals within the community. The bug that was found was horrible and resulted in extra YAM being minted during rebasing periods.

After the project developers realized the codebase was not able to be saved after trying to lock 160,000 YAM, developers figured out the smart contract was bunk. During the early morning hours on Thursday, Yam Finance cofounder Brock Elmore tweeted about the situation. Elmore said:

I’m sorry everyone. I’ve failed. Thank you for the insane support today. I’m sick with grief.

A number of well known ETH supporters told Elmore that the project was a good attempt. “You gave the community something unique to experiment with – thank you,” Anthony Sassano tweeted.

1597173073 593 Billion Dollar Public Company Microstrategy Moves 250 Million Into BTC1595889402 943 Americans to Buy Bitcoin With Their Second Stimulus Checks After

The Yam Finance project is still one of the most trending conversations on social media and crypto-related forums. Crypto entrepreneur Bruce Fenton discussed the defi token situation on Thursday and said: “Your defi tokens are junk.”

“They are not a good form of money,” Fenton added. “You have no ownership of an enterprise. No rights to revenue. There is no real revenue. Governance is meaningless without rights. Total crap – often pushed by the same jokers who got rich on ICOs. Few understand this.”

However, not everyone agreed with Fenton’s observation in regards to defi tokens.

“No ownership of enterprise is how it goes for ANY utility token or ‘currency coin,’” the CEO of Trustswap Jeff Kirdeikis responded to Fenton’s tweet. “You’re gatekeeping what ‘has value’ here by saying only security tokens have value? Common. Owning BTC doesn’t give you ownership in enterprise or revenue either… Many people understand this,” Kirdeikis added.

What do you think about the Yam Finance project and the events that unfolded? Let us know what you think about this subject in the comments below.

Tags in this story
Anthony Sassano, Brock Elmore, Bruce Fenton, Cryptocurrency, decentralized finance, DeFi, Defi Tokens, ETH, Ethereum, Jeff Kirdeikis, Tokens, YAM, Yam Finance, YAM Token, yield farming

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.



Source link

- Advertisement -
Mr Bitcointe
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
473FansLike
76FollowersFollow
4,567FollowersFollow
5,261FollowersFollow
1,580FollowersFollow
2,230SubscribersSubscribe
USD - United States Dollar
EUR
1.16
GBP
1.27
CHF
1.08
NOK
0.10
JPY
0.01
CAD
0.75
AUD
0.70

Most Popular

Bitgo Plans to Launch Wrapped Bitcoin on the Tron Blockchain

Soon there will be another network that allows people to tokenize BTC in order to leverage the underlying blockchain’s speed and fees....

Why I BOUGHT MORE DEFI! Went ALL IN!!!!

Join the Insider Group atLearn How to Invest From Cryptobud: All the techniques and strategies to help you to financial freedom!Get Free Newsletter and...

Bitcoin and Defi are going to EXPLODE SOON!

Join the Insider Group atLearn How to Invest From Cryptobud: All the techniques and strategies to help you to financial freedom!Get Free Newsletter and...

‘Bulls have won’ — Bitcoin whale clusters suggest BTC trend reversal

Bitcoin (BTC) whale clusters indicate that the price could be in a short-term trend reversal after BTC’s recovery beyond $10,700. In the past two...
bitcoin
Bitcoin (BTC) $ 10,695.59
ethereum
Ethereum (ETH) $ 350.37
ripple
XRP (XRP) $ 0.243652
tether
Tether (USDT) $ 0.999658
bitcoin-cash
Bitcoin Cash (BCH) $ 215.82
bitcoin-cash-sv
Bitcoin SV (BSV) $ 155.64
litecoin
Litecoin (LTC) $ 45.94
eos
EOS (EOS) $ 2.56
binancecoin
Binance Coin (BNB) $ 24.57
okb
OKB (OKB) $ 6.30
tezos
Tezos (XTZ) $ 2.18
leo-token
LEO Token (LEO) $ 1.23
cardano
Cardano (ADA) $ 0.095357
monero
Monero (XMR) $ 93.63
stellar
Stellar (XLM) $ 0.075008
chainlink
Chainlink (LINK) $ 10.71
huobi-token
Huobi Token (HT) $ 4.64
tron
TRON (TRX) $ 0.028284
usd-coin
USD Coin (USDC) $ 0.999187
dash
Dash (DASH) $ 68.57
neo
NEO (NEO) $ 21.57
iota
IOTA (MIOTA) $ 0.258239
nem
NEM (XEM) $ 0.116850
zcash
Zcash (ZEC) $ 54.69
maker
Maker (MKR) $ 501.32
paxos-standard
Paxos Standard (PAX) $ 0.999082
ethereum-classic
Ethereum Classic (ETC) $ 5.01
vechain
VeChain (VET) $ 0.012971
true-usd
TrueUSD (TUSD) $ 0.999483
ftx-token
FTX Token (FTT) $ 3.61
kucoin-shares
KuCoin Shares (KCS) $ 0.955798
waves
Waves (WAVES) $ 2.40