🪙 The SBF Touch

Midas Investments crafted its name from the ancient Greek story of King Midas with everything he touched turning to gold. Unfortunately, it seems that post-FTX collapse everything touched by Sam-Bankman Fried (SBF) turns illiquid and has to close down.

• On December 27th, Midas Investments announced its closure and plans to pivot to a new challenge in ‘CedeFi’ which aims to combine the best features and attributes of centralised and decentralised finance.
• Midas Investments founder, Iakov Trevor, states that the spring of 2022 was difficult for Midas’ DeFi portfolio as it suffered a cumulative loss of 50 million dollars, 20% of their assets under management (AUM).  
• The failure of Celsius and FTX, however, proved to be the firm’s breaking point and ultimately resulted in the platform’s closure. The collapse caused over 60% of Midas Investments’ AUM to be removed, leading to a significant asset loss.
• At 11:00 AM UTC on December 27th, the firm disabled customer withdrawals for a few hours to conduct calculations and later allowed users to withdraw remaining funds with adjusted deductions. The original target for balancing was 48% but due to withdrawals from the platform and swaps on the Midas token, the final number was 55%. 
• Trevor ends his announcement with “this is not the end, but rather the beginning of something new.” Referencing their plans to roll out “scalable, on-chain, verifiable, tokenized CeDeFi strategies” for both CeFi and DeFi users.

Although it’s clear that everything SBF has touched in the last 18 months has gone up in flames, Midas Investments has taken a more positive stance on the matter. Time will tell the success of Midas’ new project, however, their roadmap suggests private testing for the new project will be concluded by April 2023.