The two-day DeFi project YAM “died” after a mistake. The token, whose market value reached $ 500 million at one point, lost its value by 99 percent within minutes.
The market value of the two-day DeFi project YAM has dropped more than 99 percent after the code error that occurred in the project.
The market value, which was approximately $ 500 million minutes before the announcement from Yam.Finance’s Twitter account, fell to $ 10 million.
At around 20.30 BST yesterday evening, a YAM token was $ 180 and dropped to $ 0.50. Each token is traded for $ 1.3 at the time the news goes live.
The project, launched on Tuesday, was a ‘yield farming’ protocol in which the supply of tokens was reduced to maintain dollar parity.
Although it emerged as a relatively new project, it was soon discovered with a bug that YAM was not fully audited.
The error would cause the protocol to generate fake YAM tokens, so the token holders would not be able to make ‘governance’ decisions.
Last minute intervention didn’t work
After this error was discovered, attempts were made to fix it with a last minute intervention, but no success was achieved. Then, at 11:01 am TSI, founding partner Brock Elmore stated that the project was completely dead. Shortly after the announcement, the market value of YAM went to zero.
Meanwhile, the transition plan from the project team to YAM 2.0 was announced.