Magic Internet Money token depegs as LUNA domino effect persists


Magic Web Cash (MIM), a United States 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 MIM commenced roughly on Frid, 7:40 pm EST, which noticed the token’s worth drop to $0.926 in simply three hours.

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Terra’s Luna Traditional (LUNC) and TerraUSD Traditional (UST) dying spiral not solely affected the buyers but in addition had a unfavorable affect on quite a few crypto initiatives, together with Abracadabra’s MIM token ecosystem — as alleged by Twitter deal with @AutismCapital.

Depegging of Magic Web Cash (MIM) token worth chart. Supply: CoinMarketCap

Citing an insider scoop, AutismCapital claimed that Abracadabra accrued $12 million in dangerous 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.”

Daniele Sestagalli, founding father of Abracadabra, nonetheless, refuted the claims of insolvency by making certain to have sufficient funds to pay again the piling money owed — which has been attributed to the falling MIM costs. Sestagalli said:

“[The Abracadabra] Treasury has extra money than the debt and $CRV are useful for the protocol.”

Doubling down on his stance, Sestagalli additional publicly shared the treasury tackle holding $12 million in property whereas asking involved buyers to confirm the identical utilizing on-chain knowledge.

However, Autism Capital alleged that Sestagalli’s dangerous debt was created 5 days in the past and shared the under screenshot exhibiting his dialog about the identical on MIM’s Discord group.

Sestagalli’s dialog on MIM Discord group. Supply: @AutismCapital

Whereas the chance of insolvency continues to threaten the Abracadabra protocol, both by way of the MIM treasury persevering with to dump in worth or extra dangerous debt created, buyers are suggested to maintain observe of market fluctuations and “do your individual analysis” (DYOR) earlier than making funding selections. 

Associated: USDD stablecoin falls to $0.97, DAO inserts $700M to defend the peg

On Monday, stablecoin protocol USDD’s worth dipped to $0.97 on main crypto exchanges.

To assist out in the course of the market fluctuations, the Tron DAO Reserve introduced that it obtained 700 million USD Coin (USDC) to defend the USDD peg. On account of the fund infusion, the staff behind the stablecoin defined that the collateralization ratio of USDD is now boosted to 300%.

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