More than 60% of the assets under management at Midas were removed as a result of the failure of Celsius Network and FTX. As a result, Midas Crypto exchange is declaring bankruptcy.
Iakov “Trevor” Levin, the CEO and creator of Midas Investments, said on his blog on Tuesday that the company is closing its service due to losses this year. Midas Investments was an investment firm that concentrated on DeFi (decentralized-finance) yields.
According to Levin, the Midas DeFi portfolio dropped $50 million, or 20% of its $250 million in assets under management, this past spring, and 60% of the funds on Midas’ platform were withdrawn after the bankruptcy of cryptocurrency lenders Celsius Network and FTX.
“Based on this situation and current CeFi market conditions, we have reached the difficult decision to close the platform,” Levin wrote, referring to centralized finance.
According to Levin, the business will now concentrate on a fresh initiative that “aligns with our vision for” centralized decentralized finance (CeDeFi).
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After the failure of cryptocurrency exchange FTX and hedge fund Alameda Research, the troubled cryptocurrency sector and its rich pioneers face a day of reckoning. In particular, these crypto founders and bitcoin moguls lost $116 billion in 2022.
Beginning on Tuesday, Midas disabled deposits, swaps, and withdrawals for a period of time while it performs computations and balance adjustments. It aims to deduct 55% of user balances in bitcoin (BTC), ether (ETH), and stablecoins, with the difference paid for in MIDAS tokens, which may be exchanged for tokens in its new venture.
“The goal of the new project is to create a win-win situation by connecting competing protocols with liquidity and offering a simplified yield to a range of DeFi and CeFi audiences,” Levin wrote.