YAM, a poorly built decentralized finance (DeFi) project based on nothing besides the idea of farming sweet potatoes, gained $500 million of investments before collapsing in epic fashion last week due to coding errors. At that time Crypto.IQ speculated that more poorly built DeFi projects would pop up, since YAM proved that anyone can launch a DeFi project, and no matter how poorly built it is it could gain hundreds of millions of dollars of investments.
Lo and behold, now we have Spaghetti Money, a DeFi project which is based on nothing that gained $200 million of investments in less than 12 hours.
The Spaghetti Money website looks like it was built by someone who has no coding experience, and indeed it’s code has not been properly audited, just like YAM. Also, it has a native token called PASTA, and this token is completely useless since Spaghetti Money has no governance protocol.
Further, the official Spaghetti Money Twitter just seems to be one big meme about Spaghetti, further indicating that there is nothing to this project.
Literally, it would seem some script kiddie watched the epic YAM pump and dump, and then decided to make their own version of YAM to make quick money, and that’s how Spaghetti Money came into existence.
Of course, it seems to be only a matter of time before Spaghetti Money collapses or is hacked as well.
Also, it is only a matter of time before more ‘meme’ DeFi projects pop up and also gain hundreds of millions of dollars of investment for no apparent reason.
Ultimately, it seems the DeFi craze has degenerated into pure insanity and recklessness, and after enough projects like YAM and Spaghetti Money collapse, the government will certainly step in to end the DeFi craze with a harsh regulatory crackdown.
Therefore, enjoy the DeFi craze while it lasts, and of course stay away from valueless projects like YAM and Spaghetti Money.