Before yesterday afternoon, no one had heard of Yam Finance but 24 hours later it’s a hot topic on Crypto Twitter. Why?
Yam Finance and what it has generated on DeFi
Yesterday, the presentation of the Yam Finance project was published in Medium, which basically states that „YAM is an elastic supply cryptomone, which expands and contracts the supply in response to market conditions, initially with a target of 1 USD per YAM“.
So, YAM is an experimental DeFi yield culture protocol that „is combining some of the most interesting innovations in programmable money and governance“.
The irony is that, 24 hours later, the YAM token is valued at $138.89 according to CoinMarketCap. In fact, as shown in the graph, the growth has been quite absurd.
So no, the fact that YAM has never had a code audit does not prevent operators from doing their own. In fact, 24 hours later, over half a billion US dollars has been deposited according to YAMALYTICS.
However, these types of events should be studied and taken with caution. In fact, Erik Voorhees, CEO of Shapeshift, while admitting not to understand how Yam works, wondered if it could be a ‚Pump and Dump‘ type of scam.
So, although this is an interesting moment in the crypto market, we call again for analysis and caution when deciding to invest in such a recent and performing project.
DeFi protocols to reach $5 billion
Bitcoin and Gold are closer than ever
The price of Bitcoin and Gold are now more correlated than ever before. Yes, now the Bitcoin vs. Gold debate has reached a new impasse where it really doesn’t make sense.
According to data provided by Skew Analytics, the correlation rate between Bitcoin and Gold, as a monthly average, reached a record high of 70%.
The interesting thing is that, although it pauses the debate between crypto and precious metal, it could be seen as a confirmation that Bitcoin has started to be seen as a deposit of value.
Bitcoin vs. Gold: Which to choose?
Grayscale Bitcoin Trust records increase in interest
We have seen more and more people join the crypto market but, interestingly, the Grayscale Bitcoin Trust reported a significant increase in the number of shares issued between Q2 and Q1 2020.
To be more specific, the fund reported issuing almost 90% more shares during the second quarter of 2020 compared to the first quarter.