On November 24, 2022, the borrowing and lending protocol Meld, announced that it was still in a position of strength regarding its finances and reserves.
We are not exposed to anything tied to the FTX saga and the company developing the MELD protocol does not have any VC funding, we only have funding from a small number of Angel private investors. We would also like to again draw attention to
— MELD (@MELD_Defi) November 24, 2022
The Cardano-based platform announced this information to the public in the afternoon to quell any potential unrest in the minds of their users.
There is legitimate unrest brought on by the collapse of FTX and its sister platform Alameda and the damage it has done to the networks they heavily borrowed from or invested in.
When the platforms crashed, several people lost millions of dollars, and platforms like Solana and the Oxygen protocol took a big hit among all the DeFi protocols affected.
FTX was one of Solana’s significant investors, supporting nine projects on the platform; Oxygen Protocols, on the other hand, saved over 90% of their tokens with the exchange, and both platforms are currently on the brink of bankruptcy.
Lending protocols like Genesis were also severely affected; the platform suspended withdrawals on November 16 and recently hired an investment banking expert, Moelis & Co., to help them shore up their liquidity so that they can attend to their customers’ needs.
In their tweet, Meld has assured their customers that they are in no way affected by or tied to the FTX contagion that is rapidly spreading like wildfire in the crypto industry.
They went further to say the company behind their protocol has no VC funding but is funded by some angel investors.
To prove that they have nothing to hide, they plan on getting an EMI, which is part of the process of proving reserves at places like industry giants, the Binance exchange, and the Ethereum network.
According to the tweet, their reserve is enough to carry them for 2 years non-stop. Also, they presented a link to their developer diary updates for users who are not satisfied or curious to check out what their developers are currently doing.
For more clarification, they plan to release an updated version of their Dev Diary, which will include UI clips and screenshots.
Finally, Meld expressed gratitude to the community for continuing to support their protocol.
The damage done by the FTX crash has made many lose faith in CeFi organizations and brought about increased activity in the DeFi sector. Nevertheless, the contagion has continued to spread, and no one knows who is next to be hit.
The best option is to wait out how events will unfold themselves. However, Meld has put itself in the clear with this recent announcement.