Midas Investments Shut Down Due To FTX and Celsius Contagion
Do you want to make passive income on crypto? Let's earn interest from your crypto. Maybe you will make a quick decision to earn interest from your crypto holding. Since you hold crypto, what could go wrong if you earn interest and make this lucrative passive income?
Many platforms make this offer and people happily deposit their crypto to their platforms. If people consider how much risk they are taking transferring their crypto, they might make a different decision. It is surprising to see how many crypto projects and platforms have exposure to FTX and Celsius.
Midas Investments has to shut down its operation because it cannot run its business after losing $50 million in the collapse of the centralized crypto exchange FTX and lending platform Celsius. They tried every possible way to raise capital so that they can run their business but failed miserably.
Due to the collapse of centralized crypto exchanges and platforms, people do not trust Midas Investments anymore. People keep withdrawing funds from their platforms. It becomes way difficult to give interest and continue its operation.
So Midas Investments Founder and CEO Iakov Levin made the decision to disable customer withdrawals, deposits, and swaps. They are making necessary adjustments. Will customers get any interest in their crypto? No, not anymore. The bad news is, after the adjustment, customers will be able to withdraw only 45% of their crypto, and the rest of the 55% is gone in the name of rebalancing.
Midas Investments CEO will come up with a new project next year that claimed to be fully transparent with improved investment experience. They already get people rekt and make new plans to lure more people in 2023.
Their new product is going to be based on centralized, decentralized finance (CeDeFi) and have more opportunities with market-betting APYs. Wait! Is it centralized finance or decentralized finance? Looks like they mix it up and offer something that no one sees before.
Will people still fall for this? The same thing that gets the existing financial system in trouble, you may see that in crypto these days. They make offers that are hard to resist and show the dream of getting rich quickly. They end up getting rich with people's money. But people who fall into their traps find themselves in terrible situations.
This is happening over and over. Yes, there is a huge opportunity in crypto to make money and change your financial situation. But it will not happen overnight. I do think it takes skills, experience, patience, and consistent effort to get there.
So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.