Magic Internet Money (MIM), a USD-pegged stablecoin of the Abracadabra ecosystem, has joined the ranks of tokens that lost their $ 1 stablecoin in a premature crypto winter. The sudden de-peg of the MIM token started last night. Hence, the token price dropped to $ 0.926 in just three hours. Behind this event is thought to be the spiral of death in the Earth ecosystem (MOON). Here are the details…
The MIM algorithmic stablecoin drops after the MTS of Earth (LUNA).
Terra’s LUNA and TerraUSD (UST) deadly spiral has not only affected investors. It has also negatively impacted numerous crypto projects, including Abracadabra’s MIM token, as claimed by the “AutismCapital” Twitter account. Based on inside information, AutismCapital said Abracadabra incurred a $ 12 million debt as a direct result of Terra’s sudden fall. According to the user, “the purges did not happen quickly enough to meet the protocol’s MIM obligations.”
But Abracadabra founder Daniele Sestagalli denied the bankruptcy claims. He said he has ample resources to repay the debts attributed to falling MIM prices. Sestagalli said:
Abracadabra has more money in his treasury than in debt. The CRV is valuable to the protocol.
Algorithmic stablecoins are losing value
Reiterating his position, Sestagalli publicly shared his treasury address with $ 12 million in assets. He asked interested investors to verify the same thing using on-chain data. On the other hand, Autism Capital claimed that Sestagalli’s dubious debt was created five days ago. She shared the screenshot below showing MIM talking about it in her Discord group.
The risk of bankruptcy continues to threaten the Abracadabra protocol as the MIM treasury continues to depreciate or accumulate more debt. For this reason, investors are advised to follow market fluctuations and do their own research (DYOR) before making investment decisions. Meanwhile, cryptocurrency.com As we have also reported, a de-peg event has occurred in another stablecoin. De-peg means that the stablecoin leaves its stablecoin at a ratio of 1: 1. Five days ago, on June 13, the USDD stablecoin protocol price fell to $ 0.97 on major cryptocurrency exchanges.
Tron DAO Reserve announced that it has received 700 million USD Coins (USDC) to defend the USDD stable to assist during market fluctuations. As a result of the infusion of funds, the team behind the stablecoin announced that the USDD collateralization rate has now increased to 300%. Regardless of the overall decline in cryptocurrencies, these developments towards USDD have negatively impacted the value of TRON (TRX).
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