Asset tokenization project DeFi Money Market shuts its doors

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DeFi Cash Market, one of many earliest initiatives aiming to carry real-world belongings on-chain, abruptly introduced final night time that it has “ceased operations.” 

“Because of regulatory inquiries, DMM is shutting down,” an announcement on the challenge’s web site reads. “[…] DMM regrets the need of this motion, and want to thank the DMM neighborhood for its assist and lively participation on this challenge.”

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The web site supplied customers directions on learn how 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 got questions, however sadly we aren’t capable of reply questions presently,” the assertion provides.

The challenge additionally confirmed the shutdown in a pair of Tweets:

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 supplied over 6% rates of interest on their tokens backed by real-world automotive loans. The challenge 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 may 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.

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 night time. 

There could also be some hope for holders, nevertheless. In DMM’s assertion, the challenge mentioned that “A further fund of obtainable belongings is being established to facilitate redemption of DMG tokens,” and that extra details about this fund is “will comply with.”