Magic web cash (MIM), an America dollar-pegged stablecoin of the gibber scheme, joins the growing list of tokens losing their $1 worth amid associate untimely crypto winter. The unforeseen de-pegging of the MIM token commenced roughly on June 17, 7:40 pm ET, that saw the token’s worth drop to $0.926 in a mere 3 hours. Terra’s Luna and TerraUSD (UST) death spiral not only affected the investors, however additionally had a negative impact on varied crypto projects, as well as Abracadabra’s MIM token ecosystem as alleged by Twitter handle AutismCapital.
MIM founder refuted the claims of financial condition
Daniele Sestagalli, the founder of gibber, however, refuted the claims of financial condition by guaranteeing to possess enough funds to pay back the stilt debts that have been attributed to the falling MIM prices. Furthermore, he highlighted that, The Abracadabra Treasury has extra money than the debt and $CRV are valuable for the protocol.
Doubling down on his stance, Sestagalli more in public shared the treasury address holding $12 million in assets, whereas asking involved investors to verify identical mistreatment on-chain data.
On the opposite hand, syndrome Capital alleged that Sestagalli’s debt was created 5 days alone and shared the below screenshot showing his oral communication concerning the identical on MIM’s Discord group.
Insolvency risk continues to threaten the protocol
whereas the chance of insolvency continues to threaten the protocol, either through the MIM treasury continued to dump in worth or a lot of debt created, investors are suggested to stay track of market fluctuations and do their own analysis (DYOR) before creating investment decisions. 5 days ago, on June 13, Stablecoin protocol USDD’s worth to $0.97 on major crypto exchanges.
To assist out throughout the market fluctuations, the Tron DAO Reserve announced that it received 700 million USD Coin (USDC) to defend the USDD peg. As a result of the fund infusion, the team behind the stablecoin explained that the collateralization magnitude relation of USDD is currently boosted to 300%.
Source: https://www.thecoinrepublic.com/2022/06/18/mim-stablecoin-depeggs-following-terras-domino-effect/