Key Ideas:
- The abrupt closing of Midas Investments was announced in a blog post on Tuesday by Iakov "Trevor" Levin, the CEO of the business. Due to significant losses in 2022, the platform that focuses on DeFi yields is closing its doors for the final time.
- Midas lost 14 million dollars as a result of the Ichi protocol and 15 million dollars as a result of the devaluation of the DeFi Alpha portfolio position.
- The stablecoin TerraUSD (UST) plummeted following a significant sell-off in May, causing the tsunami's initial waves to be seen. The wave engulfed large chunks of the bitcoin market for two weeks, wiping away $500 billion.
The abrupt closing of Midas Investments was announced in a blog post on Tuesday by Iakov "Trevor" Levin, the CEO of the business. Due to significant losses in 2022, the platform that focuses on DeFi yields is closing its doors for the final time.
Levin claims that the platform's DeFi portfolio lost 20% of its managed assets in the spring of 2022. (AUM). $50 million worth of success. Consumer withdrawals of more than 60% of AUM following the failure of FTX and Celcius resulted in a substantial asset deficit, aggravating the problem. Based on those occurrences and the "current CeFi market realities," he continued, we have made the difficult decision to shut down the platform.
According to the blog post, Midas lost 14 million dollars as a result of the Ichi protocol and 15 million dollars as a result of the devaluation of the DeFi Alpha portfolio position.
The CEO added that the business would convert to a new on-chain project "that coincides with our goal for CeDeFi." CeDeFi stands for centralized, decentralized finance. a system that makes use of the benefits of decentralized finance but has higher levels of decision-making centralization.
On YouTube, the platform has posted an explanation of their decision.
Crypto’s Nightmare Year is Bookended by Midas Collapse
Only the most recent victim of cryptocurrency's most spectacular year to date is Midas Investments. The stablecoin TerraUSD (UST) plummeted following a significant sell-off in May, causing the tsunami's initial waves to be seen. The wave engulfed large chunks of the bitcoin market for two weeks, wiping away $500 billion.
The increase overtook several of the sector's once staunch heavyweights, including the hedge fund Three Arrows Capital, Voyager Digital, and Celcius Network. Three Arrows Capital (3AC) risked using borrowed funds to make speculative bets on the rise of cryptocurrency values on the assumption that prices will rise. One of 3AC's debtors was Voyager, to whom the company owed $650 million. Voyager also fell not long after 3AC did.
The digital asset lenders BlockFi and FTX failed later in the year.
Additionally, smaller Web3 and DeFi companies, institutional investors, and regular investors have been harmed by this year's crypto crisis. At least 15 pension funds suffered losses as a result of their exposure to FTX.
