After the Celsius and FTX collapse, Midas Investments ceased services on its platform.
Due to severe financial losses caused by Celsius’ bankruptcy and FTX’s fiasco, the cryptocurrency exchange Midas Investments disabled deposits and swaps.
Next year, according to CEO Iakov Levin, the organization will focus on a new project that will be “completely transparent” and offer an “improved investment experience.”
In a recent blog post, the founder and CEO of Midas Investments stated that the company ceased operations on its platform yesterday (December 27). It disabled customer withdrawals for a few hours so that necessary calculations could be performed, and then re-enabled withdrawals with adjusted deductions.
Levin said that the entity’s original intention was to remove 48% from customers’ accounts, but the percentage was subsequently adjusted to 55%:
“After removing 55% and any earned awards, “we will update user balances by balancing outstanding obligations in BTC, ETH, and stablecoins with remaining assets.”
Other digital currency balances, such as BNB, AVAX, and FTM, will not be affected. The business would also issue MIDAS tokens to impacted clients as compensation depending on the amount removed.
Levin thinks that retail and institutional customers’ interest in Decentralized Finance (DeFi) will expand dramatically over the next five years. Consequently, Midas Investments plans to provide “scalable, on-chain, verifiable, tokenized CeDeFi solutions” for both CeFi and DeFi consumers.
Additionally, the business intends to launch a new project “based on the tenets of complete transparency” that will have its own native coin. Eventually, the company will cease providing liquidity for the MIDAS token and exchange it for a new asset.
The CEO expressed regret to all consumers affected by the platform’s shutdown. He expressed optimism that the proposed revisions would provide the most effective answer to the existing difficulties.
This is not the conclusion, but the start of something new. I appreciate the difficulty of the choice to stop Midas and I’m sorry to everybody who lost money. I will make every effort to ensure that you repay your losses with the new project.”
Levin said that the business lost around $50 million (20% of $250 million AUM) last spring, and consumers withdrew a significant portion of their assets after the demise of cryptocurrencies Celsius and FTX. Midas Investments pursued fundraising and various alternatives to deal with the situation, but none of them was able to halt the decline.
The FTX debacle resulted in a significant domino effect that badly impacted the operations of countless businesses. The Japanese bitcoin exchange Liquid Global and the cryptocurrency lender Genesis Global Capital halted withdrawals, whilst BlockFi filed for bankruptcy.
Also Read: First Kia NFTs Have Paid Adoption Fees for 22,000 Pets at Shelters
