Magic Web Cash (MIM), a US dollar-pegged stablecoin of the Abracadabra ecosystem, joins the rising listing of tokens shedding their $1 worth amid an premature crypto winter. The sudden de-pegging of the MIM token commenced roughly on June 17, 7:40 pm ET, which noticed the token’s worth drop to $0.926 in simply three hours.
Terra’s LUNA and TerraUSD (UST) dying spiral not solely affected the buyers but additionally had a destructive affect on quite a few crypto tasks, together with Abracadabra’s MIM token ecosystem — as alleged by Twitter deal with @AutismCapital.
Citing an insider scoop, AutismCapital claimed that Abracadabra accrued $12 million in unhealthy debt as a direct results of Terra’s sudden downfall “as a result of liquidations could not occur quick sufficient to cowl the protocol’s MIM liabilities.”
We now have a scoop from certainly one of our affiliate autists: MIM (Magic Web Cash) could also be practically bancrupt. MIM is likely one of the bigger stablecoins, with a market cap of ~$300M.
We won’t imagine {that a} venture referred to as Magic Web Cash has been performing irresponsibly both.
Particulars:
— Autism Capital (@AutismCapital) June 17, 2022
Daniele Sestagalli, the founding father of Abracadabra, nonetheless, refuted the claims of insolvency by guaranteeing to have sufficient funds to pay again the piling money owed — which has been attributed to the falling MIM costs. Sestagalli acknowledged:
“[The Abracadabra] Treasury has extra money than the debt and $CRV are precious for the protocol.”
Doubling down on his stance, Sestagalli additional publicly shared the treasury deal with holding $12 million in belongings whereas asking involved buyers to confirm the identical utilizing on-chain knowledge.
Alternatively, Autism Capital alleged that Sestagalli’s unhealthy debt was created 5 days in the past and shared the under screenshot exhibiting his dialog about the identical on MIM’s Discord group.
Whereas the danger of insolvency continues to threaten the Abracadabra protocol, both via the MIM treasury persevering with to dump in worth or extra unhealthy debt created, buyers are suggested to maintain observe of market fluctuations and do their very own analysis (DYOR) earlier than making funding choices.
Associated: USDD stablecoin falls to $0.97, DAO inserts $700M to defend the peg
5 days in the past, on June 13, Stablecoin protocol USDD’s worth dipped to $0.97 on main crypto exchanges.
1/ And it is beginning$USDD is presently simply 92% collateralized by the Reserves (even contemplating $TRX funds) ⚠️
For those who subtract $TRX, it seems collateralization ratio is presently 73%
Additionally, the 140M $USDT will not be actually USDT, however jUSDT pic.twitter.com/fKYaIQEd1D
— Res ®️ (@resdegen) June 12, 2022
To assist out through the market fluctuations, the Tron DAO Reserve introduced that it acquired 700 million USD Coin (USDC) to defend the USDD peg. Because of the fund infusion, the workforce behind the stablecoin defined that the collateralization ratio of USDD is now boosted to 300%.
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