Crypto Investment Firm Midas Shutting Down Platform Following Losses
Midas Investments, an investment firm that focused on DeFi yields, is shutting down its platform following significant losses experienced in 2022, according to a blog post from CEO and founder Iakov “Trevor” Levin.
Levin wrote that this past spring, the Midas DeFi portfolio lost $50 million, or 20% of its $250 million in assets under management (AUM), and that after the collapse of Celsius and FTX, its platform experienced over 60% of AUM being withdrawn.
“Based on this situation and current CeFi market conditions, we have reached the difficult decision to close the platform,” Levin wrote.
The company now aims to focus on a new project that “aligns with our vision for” centralized decentralized finance (CeDeFi), according to Levin.
Starting on Tuesday, Midas disabled deposits and swaps, as well as withdrawals for some time while it makes cautions and balance adjustments. Its target is to deduct 55% from user balances held in bitcoin, ether and stablecoins, with the adjustment being compensated for in MIDAS tokens which can be swapped in for tokens of its new project.
“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.
Levin is a contributor to CoinDesk.