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Midas CEO and founder Iakov Levin announced that the company is closing down after experiencing significant losses in 2022.
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Levin stated that the Midas DeFi portfolio suffered a loss of $50 million (or 20%) of its $250,000,000 in assets under management (AUM).
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After the collapse of Celsius, FTXand Celsius, more than 60% of the platform's AUM was withdrawn.
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Levin wrote, "Based on these circumstances and current CeFi markets conditions, we have made the difficult decision to close down the platform."
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Levin stated that the company will now focus on a new project that aligns with its vision for decentralized central finance (CeDeFi).
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Midas will stop allowing deposits, swaps, and withdrawals starting Tuesday. Midas will also make balance adjustments and cautions.
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It will deduct 55% of user balances in bitcoin, Ethereum, and stablecoins.
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The adjustment will be compensated in MIDAS tokens that can be exchanged for tokens from its new project.