The Illusion of DeFi Summer: The 24 Hours of YAM's Surge and Collapse
In the summer of 2020, the DeFi market was maddeningly dazzling. A token named YAM suddenly emerged, without financing or institutional endorsement, yet it became an overnight sensation due to its 'fully community governance' and 'innovative mechanism'.
Within just a few hours of its launch, the price of YAM skyrocketed dozens of times, and everyone in the community was shouting, 'The miracle of decentralization has arrived.' Countless investors scrambled to lock up and buy it, pushing gas fees to historic highs. Many firmly believed that this was the victory of the next generation of financial experiments.
However, the prosperity lasted less than a day.
The developers discovered a fatal flaw that caused the protocol parameters to go out of control, leading to unlimited minting of the token. After the failure to fix it, the market collapsed instantly, plummeting from its peak to zero, leaving investors with no time to react, and all illusions turned to dust.
This farce taught everyone:
Tech-driven projects can also collapse instantly due to a small flaw.
In the crypto world, not all 'innovations' are worth blindly following; the hotter it is, the calmer you should be; the faster it is, the more cautious you should be.
True security comes not from project promotion, but from your reverence for risk.
