Asset tokenization project DeFi Money Market shuts its doors

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DeFi Cash Market, one of many earliest tasks 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,” an announcement 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 learn how 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 in a position to reply questions presently,” the assertion provides.

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

Together with RealT and different actual property tokenization tasks, DMM was one of many first to aim bringing real-world belongings 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 workforce references in its announcement may be tied to its botched token launch. There have been studies 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 present 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 stated 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.”