As a researcher with extensive experience in the crypto industry, I find the latest developments surrounding Yield App and the fallout from FTX’s collapse deeply concerning. Having witnessed the initial assurances given by Yield App to its users that they had minimal exposure to FTX, only for the company to now enter liquidation proceedings due to significant losses incurred through third-party hedge fund managers holding assets on the exchange, raises serious questions about transparency and accountability.
As a crypto market analyst, I’ve observed how the ongoing turmoil at FTX has affected various players in the industry. Most recently, Yield App, a crypto investment platform, revealed their intention to halt operations due to substantial financial repercussions caused by FTX’s downfall.
As a crypto investor, I’ve been closely monitoring the developments surrounding FTX’s implosion. The ripple effects of this financial turbulence, as disclosed by the Seychelles-based company in their statement on June 28, have significantly affected its liquidity and overall business operations.
Due to the upcoming liquidation process, the company has decided to halt all operations on the platform starting immediately. This action aims to provide a level playing field for all users and stakeholders involved.
Losses Tied to FTX Collapse
The company reached this conclusion following substantial financial setbacks caused by third-party hedge fund managers, who had safeguarded Yield App assets with the failed exchange FTX.
As a crypto investor in Yield App, I’ve experienced the unfortunate consequence of portfolio losses due to third-party hedge fund managers who held our assets with Yield App on the now-collapsed cryptocurrency exchange FTX. These managers are currently embroiled in ongoing legal proceedings.
As a crypto investor using Yield App’s services, I’ve received an update from the company regarding their community channels. Previously accessible on Discord and other social media platforms, these channels will no longer be open for user interaction. However, there’s good news: Yield App intends to keep a support channel operational, enabling users to connect with the firm directly through their official website when needed.
Transparency Concerns
As a analyst looking back on recent events, I was taken aback by the latest revelations as Yield App had previously assured its users in November 2022 that they had limited exposure to FTX. At the time, Tim Frost, a representative from Yield App, reassured customers that their funds were secure and that the company’s involvement with FTX was insignificant.
The contractual provision has sparked worries about the corporation’s openness and handling of customer limits with regard to FTX. However, Yield App isn’t the only party experiencing repercussions from FTX’s downfall.
Impact of FTX Collapse on Crypto Firms
FTX and its affiliated companies declared bankruptcy in November 2022 as a result of ineffective leadership and misuse of client resources. The consequences of this event are still being felt by other businesses within the industry.
This year, OPNX – a crypto exchange specializing in bankruptcy claims trading, initiated by Three Arrows Capital (3AC) founders – announced its closure. Despite OPNX not being directly implicated in FTX’s bankruptcy proceedings, 3AC, OPNX’s parent company, experienced a significant financial crisis due to the bear market of 2022 and the collapse of both FTX exchange and Terra blockchain.
As a crypto investor looking back on last year’s events, I can share that Galois Capital, led by founder Kevin Zhou, had to close down their primary hedge fund following heavy exposure to FTX. Unfortunately, we learned that over 40% of the fund’s capital was at risk when FTX experienced a collapse.
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2024-06-28 16:08