Midas Investments announced the sudden closure on Tuesday blog by its CEO, Yaakov “Trevor” Levin. As a result of significant losses in 2022, the platform focused on DeFi Yield is closing its doors for the last time.
Levin writes that Munch saw this DeFi The portfolio lost 20% of assets under management (AUM) in the spring of 2022. Damage totaled $50 million. The situation worsened after the collapse of FTX and Celcius when users withdrew over 60% of their AUM, resulting in huge asset losses. Based on those events and “current CeFi market conditions, we have reached the difficult decision to close the platform,” they wrote.
According to the blog post, Midas lost $14 million in the Ichi protocol and another $1.5 million due to its devaluation. DeFi Alpha Portfolio Position.
The CEO also clarified that the company will be the pivot of a new on-chain project “that aligns with ours.” Vision for CeDeFi.CeDeFi refers to centralized, decentralized finance. A structure that takes advantage of the benefits of decentralized finance but with more centralized decision making at the top.
forum is published Youtube video which explains their decision.
Midas Collapse Bookends The Nightmare Year Of Crypto
Midas Investments is the latest victim of crypto’s most dramatic year ever. Tsunami first appeared in May when stablecoin TeraUSD (UST) decline after a massive selloff. The wave engulfed large parts of the crypto market, wiping out nearly $500 billion in about two weeks.
The boom washed away some of the industry’s old rock-solid giants, including hedge funds Three Arrows Capital, Voyager Digital, and Celsius Network. Believing that prices would continue to rise, Three Arrows Capital (3AC) used borrowed funds to make risky bets on the crypto markets. One of 3AC’s creditors was Voyager, to which it owed $650 million. When 3AC broke up, Voyager followed shortly after.
Digital asset lender BlockFi, and crypto exchange FTX collapsed later in the year.
This year’s crypto crash has affected smaller Web3 and DeFi firms as well as institutional and retail investors. at least 15 pension fund The damage was caused by exposure to FTX.
BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.
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