The Defi Money Market (DMM) loan platform – backed by Tim Draper’s Draper Venture Network – has had a difficult birth.
The DEX Initial Offer (IDO) has been successfully completed; it raised $6.5 million in 48 hours, but investors reported problems completing transactions, a confusing interface, or raised issues of trust around the company’s track record.
On the other hand, Telegram scammers took USD 40,000 from users trying to buy – although DMM kindly compensated for lost tokens – and there were complaints about privacy issues.
Despite the problems, DMM’s DMG token is currently priced at USD 0.87, more than double the initial selling price of USD 0.36. DMG has also had the highest volume of trade at Uniswap in the last 24 hours, trading $4.8 million against Ether (ETH).
Beam will make the first move towards a private DeFi with the June 2020 hard bifurcation
What is „DMM“?
The DMM project offers a 6.25% interest in ETH, DAI and USDC, backed by real-world assets. According to the website, the assets are actually $8.8 million worth of cars owned by Finova Financial, the CEO of which is also a partner in DMM.
An independent cryptomoney investigator claimed to have identified multiple cases where personal data was not properly redacted from the records provided of DMM’s underlying assets.
Increased Stablecoins and growth of DeFi raise Ethereum fees to a 2-year high
A series of unfortunate events
Complaints from users, Telegram scammers and a vague air of chaos highlight the many similarities between the DeFi boom and the ICOs in 2017.
Shortly after the sale began, Twitter users began complaining about errors that occurred when making the exchanges; one anonymous user reported that his Bitcoin Era had been removed from his wallet despite seeing failed transactions and not receiving any DMG tokens:
„I tried to buy on the sell page, the transaction failed through the ETH exchange process. They took the ETH from my account, but I still don’t have any DMM:ETH tokens in my balance. […] Is there anyone I can contact to send you the transaction details and resolve this?“
An anonymous user of 4chan shared his outrage about „mismanaged public selling“, threatening legal action on the sale after losing money due to a confusing interface.