Investment platform Midas Investments has just announced it is shutting down due to the lack of liquidity as a consequence of the current market situation.
According to the announcement made by the company:
"In the spring of 2022, Midas DeFi portfolio suffered a cumulative loss of 50 million dollars (20% of $250 million AUM)."
As of December 27, the company's total liabilities amounted to $115 million in Bitcoin, Ethereum and stablecoins, whereas the platform's current assets are estimated at $51.7 million, with a deficit of $63.3 million.
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According to the company:
"We experienced an outflow of assets of more than 60% over the course of six months due to events involving LUNA, Celsius, and FTX."
The company has added that users will be able to withdraw 45% of their initial investment.
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Company representatives have said they intend to create a new project focused on both traditional financial users and the DeFi segment.