DeFi Cash Market, one of many earliest initiatives aiming to carry real-world property on-chain, abruptly introduced final evening that it has “ceased operations.”
“Because of regulatory inquiries, DMM is shutting down,” a press release on the undertaking’s web site reads. “[…] DMM regrets the need of this motion, and wish to thank the DMM neighborhood for its assist and energetic participation on this undertaking.”
The web site supplied customers directions on easy methods to redeem yield-bearing mTokens, and stated that yields for the tokens would drop to 0% on February tenth.
“We’re certain that you’ve got questions, however sadly we aren’t capable of reply questions presently,” the assertion provides.
The undertaking 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 via 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 automotive loans. The undertaking 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 group 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 most likely say.
Final March once they first launched they uploaded a bunch of lien docs to their web site and did not defend folks’s names and addresses.
I reported it to them they usually “mounted 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 undertaking stated that “A further fund of obtainable property is being established to facilitate redemption of DMG tokens,” and that extra details about this fund is “will observe.”