DimeFi is shutting down. Your funds remain secure with us, please withdraw your funds now.
Dear DimeFi users,
Unfortunately, I’m here to deliver some disappointing news: DimeFi will be shutting down on October 31, 2022. Here is a detailed timeline and next steps:
- As of October 5, 2022, we will not accept any new users or any new deposits on our platform. Please DO NOT deposit funds into your deposit address, as any funds sent might not be recoverable.
- We are no longer accepting crypto buy orders. Crypto sell orders will continue to operate until October 31, 2022 at 5 pm PT.
- Bank withdrawals and crypto withdrawals will operate as usual until October 31, 2022 at 5 pm PT. Your funds remain secure with us, but we kindly ask you to withdraw your remaining account balance immediately. Pending deposits will continue to be subject to the 10-day holding period and available for withdrawal once the holding period is lifted.
- We will stop paying interest on all tokens starting on October 5, 2022.
- Your DimeFi account will be deactivated after your account balance is drained, and you will receive your full transaction history in a CSV format to your registered email address 14 days after your account is deactivated.
- On November 1, 2022, we will stop supporting the DimeFi service. The website will be taken offline, and our mobile app will be delisted from the Apple App Store. Our customer support (support@dimefi.com) will continue to operate for another two months, until the end of 2022.
We started DimeFi with the vision to make low-cost crypto trading and crypto-powered high-yield rewards accessible to everyone. We offered our users effortless access to the DeFi lending market with a stable high yield on USDC at 12% APY. We invested heavily in building in-house DeFi risk management technology — an unpopular topic back in late 2021. In hindsight, it turned out to be the best decision we made.
Coming into May 2022, the infamous algorithmic stablecoin UST lost its dollar peg and permanently changed the landscape of the crypto market. Bitcoin price dropped 60% in less than one month, and many crypto high yield services went bankrupt and lost their customers’ savings overnight. Meanwhile at DimeFi, leveraging our DeFi risk management technology, we noticed the crash signal early and took swift action to mitigate the downside risk. DimeFi customers suffered 0 losses from the UST/LUNA fiasco and continued to earn a reasonably high yield since the market crash.
While we are super proud of sheltering our users from the market shock waves, operating DimeFi faces many challenges. As a U.S.-based, fully compliant crypto service, one of our biggest challenges is the uncertainty of crypto regulations. In the past two months, our banking partner, PrimeTrust LLC, exited Hawaii and South Dakota due to regulatory requirement changes. Because we rely on PrimeTrust for customer bank transfers, we had to follow suit and sadly wave goodbye to our Hawaii and South Dakota-based users. In addition, the prolonged debate about whether cryptocurrencies like POS ETH and DeFi high yield are considered as security called the long-term viability of our service into question.
After carefully considering all possible factors and consequences, we have made the very tough decision to shut down the DimeFi service and say farewell to all DimeFi users. It will enable us to put our full resources and energy into building the next generation of web3 technologies.
As we are busy planning a smooth exit procedure, I apologize for the delayed customer support over the past few days. We will process all withdrawals and remain available to answer support queries from all users in the coming months.
We are deeply grateful for the trust and support from our users. Over the past year, we have received many encouraging words, healthy doubts and feedback about our service, and I’m so glad that we’ve kept our promises and protected our customers’ funds. In the future, the DimeFi team will continue to push web3 towards a mature industry with other innovative projects, and I truly hope our paths will cross again.
Sincerely,
Rex Ren
CEO of DimeFi
On behalf of the DimeFi team
