YAM's Market Cap Falls From $60M to Zero in 35 Minutes
YAM’s market cap fell to zero just minutes after the co-founder pronounced the yield farming project dead. A rescue plan is now in the cards.
Aug 13, 2020 at 9:45 a.m. UTCUpdated Mar 2, 2023 at 8:50 p.m. UTC
:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindeskuat/4HKFPDSTYNBA5A4MJREHZ3T3DM.png)
Two-day-old DeFi project YAM has seen its market cap evaporate in under an hour as a desperate last-minute attempt to fix a bug in the code ultimately failed.
- Data from price site CoinGecko shows the total value of YAM collapsed from roughly $60 million at 07:40 UTC to $0 by 08:15 – barely 35 minutes later.
- The price of YAM tokens, which peaked at roughly $167 at 17:30 UTC, had spiraled down to barely $14 at just before 08:00.
13:18
Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
05:10
Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
04:07
The first video of the year 2024
40:07
The last regression video of the year 3.67.0
- Having only launched Tuesday, YAM was a yield farming protocol where tokens were intended to keep parity with the U.S. dollar through loosening or contracting supply.
- Its relative newness, though, meant the code hadn't been properly audited; a bug was soon discovered that effectively meant the protocol would keep printing "dud" YAM tokens that would prevent token holders from making any governance decisions.
- A last-minute attempt to save the protocol ultimately failed and co-founder Brock Elmore pronounced the project dead at 08:01 UTC.
- Yam's market cap went to zero moments later.
- The project announced a plan to migrate to YAM 2.0 just before press time.
- Crypto exchange Gate.io announced it will reinstate deposits, withdrawals for YAM, with trading set to resume at 14:30 UTC.
STORY CONTINUES BELOW
UPDATE (Aug. 13, 10:45 UTC): This article has been updated to include the Gate.io announcement.
:format(webp)/downloads.coindesk.com/arc/failsafe/user/1x1.png)