Crypto Investment Firm Midas Shuts Down Platform
Key Points:
- The extensive withdrawals and reduced yield opportunities on the market had the firm unable to cover daily payouts to users due to the assets deficit.
- Midas DeFi portfolio lost $50 million, or 20% of its $250 million in assets under management (AUM) after the collapse of Celsius and FTX.
- Only Midas C-level employees were aware of the asset deficit.
According to a blog post on December 27 by CEO and founder Iakov “Trevor” Levin, Midas Investments, an investment business focusing on DeFi yields, is closing down its platform following huge losses in 2022.
Levin stated that the Midas DeFi portfolio lost $50 million, or 20% of its $250 million in assets under management (AUM) and that after the collapse of Celsius and FTX, its platform had over 60% of AUM removed.
In particular, Levin shared the situation that over the past eight months, the Midas team has been focused on identifying and capitalizing on opportunities to balance their assets and liabilities including launching CeDeFi strategies. However, the extensive withdrawals due to the insolvency of Celcius and FTX, coupled with reduced yield opportunities on the market, made it impossible for the firm to cover daily payouts to users due to the assets deficit.
Based on this situation and current CeFi market conditions, we have reached the difficult decision to close the platform.
Levin wrote
Only Midas C-level employees were aware of the asset deficit. The community team, marketing team, support team, IT team, and platform team were not aware of this issue.
According to Levin, the business will now focus on a new project that aligns with its goal for centralized decentralized finance (CeDeFi), in which the project will be fully transparent, on-chain, and built with the goal of offering a new and improved investment experience.
Beginning on Tuesday, Midas disabled deposits, swaps, and withdrawals for a period of time as it made precautions and balance adjustments. It aims to remove 55% of user balances in bitcoin, ether, and stablecoins, with the difference paid for in MIDAS tokens, which may be exchanged for tokens in its new project.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
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Crypto Investment Firm Midas Shuts Down Platform
Key Points:
- The extensive withdrawals and reduced yield opportunities on the market had the firm unable to cover daily payouts to users due to the assets deficit.
- Midas DeFi portfolio lost $50 million, or 20% of its $250 million in assets under management (AUM) after the collapse of Celsius and FTX.
- Only Midas C-level employees were aware of the asset deficit.
According to a blog post on December 27 by CEO and founder Iakov “Trevor” Levin, Midas Investments, an investment business focusing on DeFi yields, is closing down its platform following huge losses in 2022.
Levin stated that the Midas DeFi portfolio lost $50 million, or 20% of its $250 million in assets under management (AUM) and that after the collapse of Celsius and FTX, its platform had over 60% of AUM removed.
In particular, Levin shared the situation that over the past eight months, the Midas team has been focused on identifying and capitalizing on opportunities to balance their assets and liabilities including launching CeDeFi strategies. However, the extensive withdrawals due to the insolvency of Celcius and FTX, coupled with reduced yield opportunities on the market, made it impossible for the firm to cover daily payouts to users due to the assets deficit.
Based on this situation and current CeFi market conditions, we have reached the difficult decision to close the platform.
Levin wrote
Only Midas C-level employees were aware of the asset deficit. The community team, marketing team, support team, IT team, and platform team were not aware of this issue.
According to Levin, the business will now focus on a new project that aligns with its goal for centralized decentralized finance (CeDeFi), in which the project will be fully transparent, on-chain, and built with the goal of offering a new and improved investment experience.
Beginning on Tuesday, Midas disabled deposits, swaps, and withdrawals for a period of time as it made precautions and balance adjustments. It aims to remove 55% of user balances in bitcoin, ether, and stablecoins, with the difference paid for in MIDAS tokens, which may be exchanged for tokens in its new project.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
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