YAM's Market Cap Falls From $60M to Zero in 35 Minutes

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.

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.

UPDATE (Aug. 13, 10:45 UTC): This article has been updated to include the Gate.io announcement.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Paddy Baker

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.