{"id":42905,"date":"2022-12-28T08:33:33","date_gmt":"2022-12-28T12:33:33","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=42905"},"modified":"2022-12-28T08:33:35","modified_gmt":"2022-12-28T12:33:35","slug":"midas-investment-shuts-down-due-to-63m-defi-portfolio-deficit","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/midas-investment-shuts-down-due-to-63m-defi-portfolio-deficit\/","title":{"rendered":"Midas investment shuts down due to $63M DeFi portfolio deficit"},"content":{"rendered":"\n
Midas investment a custody-based CeDeFi platform will cease operations due to a $63.3M loss in its decentralized finance (DeFi) portfolio, as users withdrew more than 60% of their assets under management<\/a> due to the crypto market decline.<\/h5>\n\n\n\n
\"Midas
Midas investment shuts down due to $63M DeFi portfolio deficit<\/figcaption><\/figure>\n\n\n\n

Iakov Levin, popularly known as “Trevor,” the company's founder and CEO, said in a statement that the decision was made in part due to the fund's DeFi portfolio losing $50 million, or 20% of its $250 million in assets under management (AUM).<\/p>\n\n\n\n

Levin also emphasized how their troubles were exacerbated by the failure of the Terra, FTX exchange, and Celsius. Following the LUNA, Celsius, and FTX disasters, 60% of the cash was withdrawn by users, according to the creator of Midas\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>. Levin penned:<\/p>\n\n\n\n

\n

\u201cWe experienced an outflow of assets of more than 60% over the course of six months due to events involving LUNA, Celsius, and FTX. This made it impossible for us to sustain our fixed yield model.\u201d<\/p>\n<\/blockquote>\n\n\n\n

The company's total liabilities in Bitcoin, Ether, and stablecoins are $115 million, but its present assets are estimated to be worth $51.7 million, according to the release. This results in a $63.3 million loss overall.<\/p>\n\n\n\n

\"\"
Breakdown of the balance deficit. Source: Midas Investments<\/figcaption><\/figure>\n\n\n\n


The creator also mentioned Midas' future plans to provide CeDeFi methods for users of CeFi and DeFi, starting a new initiative in an effort to establish a new “win-win scenario.” According to Levin, liquidity will be used to link rival protocols.<\/p>\n\n\n\n

DeFi platform Defrost Finance<\/a> just revealed how it intends to reimburse consumers, and in the meanwhile, it has finally spoken up in response to claims that it pulled a “rug pull” after the recent $12 million exploit on its platform. According to the Defrost team, a compromised key does not equal a rug pull.<\/p>\n\n\n\n

Avraham Eisenberg was just detained and charged, according to other DeFi sources. The Federal Bureau of Investigation charged Eisenberg with commodities fraud and commodities manipulation as a result of the Mango Markets exploit in a complaint that was made public on December 27.<\/p>\n","protected":false},"excerpt":{"rendered":"

Midas investment a custody-based CeDeFi platform will cease operations due to a $63.3M loss in its decentralized finance (DeFi) portfolio, as users withdrew more than 60% of their assets under management due to the crypto market decline. Iakov Levin, popularly known as “Trevor,” the company’s founder and CEO, said in a statement that the decision […]<\/p>\n","protected":false},"author":12,"featured_media":42912,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[73],"tags":[4504,12900,12899],"class_list":["post-42905","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-defi-news","tag-cedefi","tag-deficit","tag-midas-investment"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/12\/image-92.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/42905","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=42905"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/42905\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/42912"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=42905"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=42905"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=42905"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}