Midas Investments calls it quits
Midas Investments, a platform that enables users to earn passive income on their crypto holdings through DeFi Yield, has announced the closure of its businesses due to unforeseen circumstances beyond its control.
in a blog Post On December 27, by CEO Trevor Levine, the project revealed that it suffered a cumulative loss of $50 million due to the collapse and failure of centralized crypto lender, Celsius. Sam Bankman-Fried The FTX exchange represents approximately 20% of its $250 million worth of assets under management (AUM).
Trevor claims that the fear, uncertainty and doubt (FUD) generated by the debacle of Celsius and FTX triggered a massive withdrawal of funds (over 60% of AUM) from his platform by investors, resulting in a huge asset loss. Happened.
“At 11:00am UTC on December 27th, we will disable deposits and swaps on our platform. Withdrawals will be disabled for 2-3 hours while we ensure calculations and balance adjustments are made correctly.” Once this is done, you will be able to withdraw remaining assets from the platform, any rewards earned will be deducted from your balance.
Midas CEO Trevor Levin
Importantly, the Midas team made it clear that investors will only be able to withdraw approximately 45% of their assets as it “plans to adjust user balances by balancing the remaining liabilities in BTC, ETH and with the remaining assets.” Stablecoin, 55% off and rewards earned.”
However, users whose balance is less than $5k will not be affected by the Midas rebalancing system, but their earnings will be deducted.
Midas plans to launch a new product based on centralized, decentralized finance (CeDeFi) in early 2023. The team claims that its proposed solution will be designed to offer a “scalable, on-chain, verifiable, tokenized CeDeFi strategy” to both CeFi and DeFi users.
In related news, FTX investors have filed A lawsuit against the project collapsed, urging the US bankruptcy court to prioritize their total reimbursement before settling non-subscriber creditors.
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