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So to preface this article, another reminder that this is not financial advice, nor am I a financial advisor. This is for entertainment and educational purposes only. Please as with anything, do your own research and figure out what the best investments are for yourself.
Following up from my previous article about Midas, Midas Investments(my referral link) is a platform similar to others such as Blockfi that allows you to accrue interest on your cryptocurrencies. They support roughly 30 different types of cryptocurrencies, with varying interest rates on each, most notably 23% on ETH and 17% on BTC. I will once again admit that starting out I was a bit skeptical about how they were offering such great rates, especially when other reputable platforms such as Blockfi and Gemini were offering a paltry 3-5%. But now that I've been drinking the kool-aid for about a month, I have been extremely impressed at their transparency, their staff, and what positive steps they have made just over the past month to increase my level of trust in their ecosystem. Not only that, they've recently hit their 4-year anniversary, which is an impressive feat in the world of crypto. (that's like the same as dog years right?)
OK. So why I've drank the Midas kool-aid.
Addressing some of the pros...
1) the $MIDAS token has exploded and also it's on fantom: My buddy joked around with me that if I really supported Midas that I should buy into the MIDAS token. And damn, I wish I would have. At the time of this conversation, MIDAS was trading around $5 and to date, now it's around $25, a quick 5x over the past month. Also, it has a crazy small marketcap which might make it more volatile, but that also means that the ceiling can go crazy with buybacks.
Speaking of fantom, it's one of the few places where I can swap into FTM mainnet easily, and on top of the earn daily payouts for my FTM at 17% APY. There swap feature is still in beta testing, but it's awesome to have this option, especially when other platforms such as KuCoin, Gemini, and CRYPTO.COM only offer FTM ERC20.
3) Payouts, Payouts, Payouts: This is where the bread and butter is. They offer daily interest payouts on all your assets. And once again, they offer 23% on ETH and 17% on BTC. If you see any other platform that offers these kind of interest rates without the risk of impermanent loss, PLEASE tell me. I was a little skeptical of these rates at first, but learning more about liquidity pools and how other platforms are generating these revenues, the rates actually aren't that crazy. For example, earning 19% on USDT was at first mind-blowing to me on USDT, but I realized that's actually not that hard on to do when you have platforms like
4) They've been super transparent. I've been following the Midas team in discord for some time now, and they have been super responsive, and super transparent to many of the things that they've been working on, and what things are coming down the pipe. I highly recommend watching Midas on FTM alerts, one of the best (if not best) youtube channels about the fantom network.
In addition, they have a customer support chat feature linked directly to their platform, which I have found extremely helpful when there was a lag on one of my LTC deposits. I'm not sure how extensive their customer support team is, but a big shout out to Siro who tracked down my deposit and gave me an accurate timeline of when it would post!
Addressing some of the cons...
1) Midas is not insured. I'm just throwing that big con out there first. So if you're in the risk adverse boat of not messing around with a platform that's not insured, then Midas may not be for you. And I certainly understand why this will deter a lot of people, especially for those of you that are looking for a place to park big sums of money.
What they've done: Over the past month, in order for enhanced security, even though Midas isn't insured, all assets have now been placed on Fireblocks, which IS insured. Now I'm not a liability expert, but my assumption is that if your assets that Midas holds gets hacked into, then there will be coverage, but if you yourself get hacked, I'm not sure if that will be covered. Nevertheless, this is a very reassuring move.
2) Your account can only be connected through either your google or discord login: now this one is a bit of a mixed bag, because I know that some people are prone towards simplicity, and if you've been one to miswrite or misplaced your password/seed phrases, then the google/discord login might actually be very attractive to you.
What they've done: Once again, in order to enhance security, over the past month they have added a 2-FA authentication for your account, which you can opt-in/out of in the future. Also they've announced that in February they will start doing KYC, which again, might be a pro or a con for some. Not giving any tax advice here, but KYC verification means that users may have to start reporting some of their transactions/gains on their taxes.
3) Their rates wont' last forever. This goes along with the pro of them being transparent, but they do plan on dropping their ETH and BTC rates by 3-5% sometime this month. And given the turns of the market this past few weeks, I'm honestly not that surprised.
What they've done: They are supplanting some of these fallen rates with the opportunity to get higher rates by opting into MIDAS payouts. Also, they're planning on expanding their current asset options so more types of tokens should be available in the future.
Conclusion
So given some of the cons, I still won't be putting all of my holdings in Midas, but I've definitely become much more bullish on their platform over the past month. And if they continue to make the moves that they are, I suspect my level of trust will only increase. If you're thinking about trying them out, please consider supporting me and using my referral link: https://midas.investments?p=0191 when you sign up.
Or if you've already used or are using Midas, I'd like to hear from you if you've had any issues/successes with Midas yourself. Or, is there anything that i missed from my pros and cons list?
