Analyzing the influence of YAM’s launch and a bug that completely disabled it, crypto analytics company Messari discovered that investors have not entirely backed out. In a report this week, the firm revealed that YAM remains the 7th largest DeFi project in the industry.
The ranking is based on the sum of locked-up funds, which amount to around $400 million at the time of writing. However, that is still a sizeable downgrade considering that investors initially locked up $750 million before launch.
As a reminder, YAM launched its protocol last week, after which a catastrophic bug completely disabled it. Developers spotted the bug three days after launch, marking what is described by the team ‘an experiment in fair farming, governance, and elasticity’ a complete disaster. Still, the ‘meme’ project enjoys both financial streams from crypto traders and social media engagement – a mere opposite from the team’s deeply highlighted statement that ‘YAM holds zero inherent value.’
In the end, the crypto community has decided to bring value to YAM instead. According to some members of the community, the significant capital flown into the project may indicate that we are still battling an excessively premature and uncertain market. They claim that these projects are more destructive than helpful, despite making some few people very rich.
YAM v2 migration plan pushes price up
Data from crypto price aggregator CoinGecko shows that YAM fluctuated between $37 and $157 for the first two days. After discovering the bug, YAM almost instantly flatlined and dumped to a mere dollar. Fluctuations have continued as the token hit a low of $0.28 and $1 during various points of the week. After an announcement from the developer team that migration to YAM v2 would soon take place, the token started rising again.
At the project’s official website, the devs state that a new ERC-20 token called YAMv2 will replace the old token. The team will create a migration token, which will replace old tokens in a 1:1 ratio. Additionally, the team will launch a fully audited version of the protocol called YAMv3 at some point in the future.
In the last 24 hours, the price has almost doubled. Whether you believe that the project is a meme or a DeFi experiment, market data shows that investors remain interested. Does a serious community that considers the project a real and resourceful experiment exist? If they exist, there is interest to forget the launch failure and look forward to the YAM v2 migration.
In either case, all cryptocurrency enthusiasts can agree that there are still unpredictable projects like YAM. Some of them are comparable to the likes of what we have seen in the 2017 ICO craze. Messari commented this by stating that “these experiments are not going away.” The firm further noted:
“Money is a great motivator and people are making a lot of it. One can only hope we’re not increasing the risk of a DAO-like hack that brings the system to its knees.”