DeFi Cash Market, one of many earliest initiatives aiming to deliver real-world belongings on-chain, abruptly introduced final evening that it has
DeFi Cash Market, one of many earliest initiatives aiming to deliver real-world belongings on-chain, abruptly introduced final evening that it has “ceased operations.”
“Because of regulatory inquiries, DMM is shutting down,” a press release on the mission’s web site reads. “[…] DMM regrets the need of this motion, and wish to thank the DMM group for its assist and energetic participation on this mission.”
The web site supplied customers directions on how one can redeem yield-bearing mTokens, and mentioned that yields for the tokens would drop to 0% on February 10th.
“We’re certain that you’ve questions, however sadly we aren’t capable of reply questions presently,” the assertion provides.
The mission additionally confirmed the shutdown in a pair of Tweets:
Because of regulatory inquiries, DMM is ceasing operations. mTokens might be redeemed with curiosity accrued to-date by way of 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 try bringing real-world belongings to the DeFi panorama. They provided over 6% rates of interest on their tokens backed by real-world automotive loans. The mission 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 stories 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 individuals’s names and addresses.
I reported it to them and so they “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 at the moment 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 mission mentioned that “A further fund of accessible belongings is being established to facilitate redemption of DMG tokens,” and that extra details about this fund is “will observe.”