According to Levin, in the spring of 2022, the platform’s DeFi portfolio lost 20% of its assets under management (AUM). a success worth $50 million. After FTX and Celcius failed, consumers withdrew more than 60% of AUM, creating a significant asset deficit, which worsened the issue. We have made the tough decision to terminate the platform based on those events and the “current CeFi market conditions,” he added.
The blog post claims that Midas lost 15 million dollars due to the devaluation of the DeFi Alpha portfolio position and lost 14 million dollars as a result of the Ichi protocol.
The company would switch to a new on-chain initiative “that corresponds with our strategy for CeDeFi,” the CEO further stated. Centralized, decentralized finance is referred to as CeDeFi. a system that utilizes the advantages of decentralized finance but has higher levels of centralization in decision-making.
The platform has made an explanation of their choice available on YouTube.
Midas Investments is only the most recent casualty of cryptocurrency’s most dramatic year to date. The ripples of the tsunami first became visible in May when the stablecoin TerraUSD (UST) crashed after a massive sell-off. Over two weeks, the wave wiped out $500 billion from the cryptocurrency market by engulfing vast portions.
Some of the industry’s once steadfast heavyweights were overtaken by the upsurge, including the hedge fund Three Arrows Capital, Voyager Digital, and Celcius Network. Assuming that prices will grow, Three Arrows Capital (3AC) used borrowed money to place hazardous bets on the cryptocurrency exchanges. Voyager, a creditor to whom 3AC owed $650 million, was one of 3AC’s creditors. Shortly after 3AC’s collapse, Voyager also fell.
Later in the year, the digital asset lenders BlockFi and FTX went under.
The crypto crisis of this year has also impacted smaller Web3 and DeFi businesses, institutional investors, and ordinary investors. As a result of their exposure to FTX, at least 15 pension funds experienced losses.
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