In a surprising turn of events, Yield App, a self-described community-driven digital wealth management platform, has announced the immediate suspension of all its activities as it enters liquidation proceedings. This decision comes in the wake of the realization of portfolio losses incurred through third-party hedge fund managers who had custody of Yield App’s assets on the collapsed cryptocurrency exchange FTX, which is now subject to ongoing litigation.
The Unfolding Situation
Yield App made the announcement on the popular social media platform X, formerly known as Twitter. The platform stated that in addition to the suspension of all platform activities, its community channels will also be suspended, while a dedicated support channel will remain open via the yield.app domain.
“This follows the realization of portfolio losses incurred through third-party hedge fund managers that held Yield App assets in custody on the collapsed cryptocurrency exchange FTX, and who are subject to ongoing litigation,” the platform wrote.
Users attempting to access Yield App’s website are greeted with the same announcement on the homepage, indicating the immediate cessation of operations.
Suspension of platform activity ahead of liquidation proceedings
28 JUNE 2024, 04:15 UTC: Yield App Ltd, a Seychelles-incorporated limited liability company, is today, Friday 28 June 2024, announcing the suspension of all activity on the digital wealth platform…
— Yield App (@YieldApp) June 28, 2024
The Yield App Journey
Yield App, which raised nearly $5 million in a hybrid funding round led by Alphabit and Digital Strategies in 2020, had positioned itself as a community-driven digital wealth management platform. The platform’s native token, YLD, has been hit hard by the news, plummeting 58% in the past 24 hours.
The Road Ahead
Yield App has asked for patience from its users and stakeholders, promising to release more information “at the earliest possible date.” The decision to suspend activity and enter liquidation proceedings reflects the platform’s commitment to “ensure fair and equal treatment for all Yield App’s users and stakeholders” in the aftermath of the FTX collapse.
As the crypto industry continues to navigate the repercussions of the FTX debacle, the Yield App saga serves as a stark reminder of the importance of robust risk management and the need for increased transparency and accountability within the digital asset ecosystem.
