Market Analysis Report (28 Dec 2022)

Market Analysis Report (28 Dec 2022)

Source Node: 1789536

Cryptocurrency investment firm Midas Investments, which focused on decentralized finance (DeFi) yields, is shutting down following significant losses experienced in 2022.

In a blog post, its CEO and founder Iakov Levin wrote that this past spring the company’s DeFi portfolio lost $50 million, or 20% of its $250 million in assets under management, and that after the collapse of Celsius and FTX, it experienced a 60% drawdown on its assets under management. Levin wrote:

“Based on this situation and current CeFi market conditions, we have reached the difficult decision to close the platform.”

Midas Investments will be shifting its focus to a new project centered around Centralized Decentralized Finance (CeDeFi), according to Levin. In preparation for this transition, the company has disabled deposits, swaps, and withdrawals.

As part of the necessary adjustments, Midas plans to deduct 55% from user balances held in Bitcoin, Ether, and stablecoins, and will compensate affected users with MIDAS tokens that can be exchanged for tokens in the new CeDeFi project.

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