Dutch crypto company Yieldt is bankrupt, but not à la FTX

The crypto industry has been hit hard by the bear market. Unfortunately, there are also after the bankruptcy from ftx still businesses. Now it is the turn of a Dutch company, the investment fund Yieldt.

Dutch Yieldt bankrupt

Lots of problems in the market in recent months have been created by excessive amounts of debt and by irresponsible behavior, such as at FTX. But this shows the one based in Rotterdam Yields not to be the case. In fact, there seems to be no external ‘leverage’ in jargon at all.

Instead, Yieldt simply went bankrupt because too many customers left. The falling prices of cryptocurrencies caused many customers to leave. Here is the crux, writes Quote. Yieldt’s profits come from a commission structure. Customers pay a commission on the profit it makes, but the capital flight away from crypto meant that the company could no longer charge commissions.

Sales simply disappeared. So this does not appear to have been caused by poor asset management. So there was actually no leverage, the roughly 600 customers simply get their money back. The company has tried to find lenders and to limit expenses, but that has not succeeded either. The judge will have it on December 8 bankruptcy approved.

Yieldt not comparable to ftx

The problems at FTX seem to be caused by irresponsible decisions, but that is not the case at Yieldt. The asset manager has a very personal approach, managing client portfolios individually. For this it uses the crypto exchanges Kraken and the Dutch Bitvavo, but the accounts used belong to customers instead of the fund. The crypto currencies also belong to customers.

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Rob Steenhoek of LVH Advocaten has been appointed as curator. He emphasizes to Quote that Yieldt provided nothing more than investment advice. “[Investeerders volgen het beleggingsadvies] on or not. Yieldt itself does not manage any cryptocurrencies or wallets.” Clients therefore let Yieldt monitor and direct what they do.

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