DMG token holders take to Twitter to grieve as their holdings crash 75%
DeFi Cash Market, one of many earliest initiatives aiming to deliver real-world property on-chain, abruptly introduced final evening that it has “ceased operations.”
“On account of regulatory inquiries, DMM is shutting down,” a press release on the venture’s web site reads. “[…] DMM regrets the need of this motion, and want to thank the DMM group for its assist and lively participation on this venture.”
The web site offered customers directions on the best way to redeem yield-bearing mTokens, and mentioned that yields for the tokens would drop to 0% on February tenth.
“We’re certain that you’ve questions, however sadly we’re not in a position to reply questions at the moment,” the assertion provides.
The venture additionally confirmed the shutdown in a pair of Tweets:
On account of regulatory inquiries, DMM is ceasing operations. mTokens could be redeemed with curiosity accrued to-date by the next hyperlink: https://t.co/mWB1WacKaH
— DMM DAO (@DMMDAO) February 5, 2021
Together with RealT and different actual property tokenization initiatives, DMM was one of many first to aim bringing real-world property to the DeFi panorama. They provided over 6% rates of interest on their tokens backed by real-world automobile loans. The venture launched with the assist of a custom-built Chainlink oracle and the backing of billionaire investor Tim Draper.
Some have speculated that the regulatory scrutiny the crew references in its announcement could also be tied to its botched token launch. There have been reviews shortly after their token sale that paperwork the corporate uploaded to show the mortgage backing inadvertently revealed the identities of mortgage holders.
Now that $DMG has collapsed, can in all probability say.
Final March after they first launched they uploaded a bunch of lien docs to their website and did not shield folks’s names and addresses.
I reported it to them they usually “fastened it” however the originals are nonetheless on @IPFS
— Colin Platt (@colingplatt) February 6, 2021
The announcement has led to a precipitous decline in DeFi Cash Market’s DMG governance token. DMG presently trades at $.093 cents after falling from $.53 highs final evening.
There could also be some hope for holders, nonetheless. In DMM’s assertion, the venture mentioned that “An extra fund of obtainable property is being established to facilitate redemption of DMG tokens,” and that extra details about this fund is “will comply with.”