The custodial investment platform Midas Investments said it would cease operations due to liquidity shortages triggered by a string of adverse events in the industry.
In this article, we want to share with you the story of what led us to this difficult decision, provide you with an overview of our balance sheets, P&L, and DeFi portfolio composition, and give you some insight into our plans for the future.
Link: https://t.co/Oa6uTDYN6L pic.twitter.com/3mIg4fAK7l
— Midas.Investments (@Midas_platform) December 27, 2022
“In spring 2022, Midas’s decentralized finance portfolio suffered aggregate losses of $50 million (20% of AUM, based on $250 million AUM),” according to the statement.
As of December 27, total liabilities stood at $115 million in Bitcoin, Ethereum and stablecoins. The platform’s current assets were valued at $51.7 million, with a deficit of $63.3 million.
“We faced asset outflows of more than 60% over six months due to events related to LUNA, Celsius and FTX,” according to Midas Investments.
The company added that users would be able to withdraw 45% of their initial investments.
Representatives of Midas Investments stressed that they plan to create a new project aimed at both traditional finance users and the DeFi segment.
Earlier, Binance CEO Changpeng Zhao suggested that the FTX crisis would lead to a “cascading effect” in the crypto industry.
In November, the Serum decentralized exchange on Solana ceased operations following the collapse of Sam Bankman-Fried’s business empire.
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