DeFi Money Market DAO Shutting Down; DMG Token Falls off a Cliff
DeFi Money Market DAO, DMM is ceasing its operations following the regulatory inquiries.
The team announced late on Friday that “DMM regrets the necessity of this action,” but mToken minting will no longer be available, effective immediately. The redemption of mToken, however, will be available for an indefinite time period. But the interest rate on mTokens will drop to 0% around Feb 10, 2021.
“Capital and interest are currently available to fund the redemption of all outstanding mTokens plus accrued interest,” noted the team. As such, mTokens holders are advised to redeem them as soon as possible.
The governance token of the project DMG also lost more than 84% of its value and is currently trading around $0.104 ever since the news of shut down broke out. For DMG tokens’ redemption as well, an additional fund of available assets is rolled out, details of which will be shared soon.
“Sad to see what happened with DMG today,” tweeted derivatives exchange FTX, which is keeping the DMG market open to let people trade if they want, though leverage will be reined in. Since its drop to $0.045, DMG has been up 28%.
“We don't know of any nefarious things that happened but will investigate given the unusual price pattern,” added FTX.