- MIM has fallen 7% in the last 24 hours and is now trading at $0.9456.
- Wonderland Treasury withdrew $57 million USDC from a MIM Curve liquidity pool.
Since crypto markets began to unravel, Magic Internet Money (MIM), the stablecoin native to the DeFi network, has lost its peg. MIM has fallen 7% in the last 24 hours and is now trading at $0.9456. MIM’s value has been threatened by a rapid decrease in the crypto markets, which led to the move to de-peg the token.
The MIM pool on DeFi platform Curve has a significant imbalance, with 96% of the pool consisting of MIM, which has only worsened the situation. It’s a sign that traders are unloading the token, most likely.
Terra Catastrophe Haunting the Rest
Famous Crypto analyst @AutismCapital claims that MIM and Abracadabra are “nearly insolvent” because of $12 million of bad debt from the Terra catastrophe, claiming insider information.
We have a scoop from one of our associate autists: MIM (Magic Internet Money) may be nearly insolvent. MIM is one of the larger stablecoins, with a market cap of ~$300M.— Autism Capital 🧩 (@AutismCapital) June 17, 2022
We can't believe that a project called Magic Internet Money has been acting irresponsibly either.
There are more assets than liabilities in Treasury, according to Abracadabra creator Daniele Sestagalli. Additionally, Sestagalli released the address of the network’s Treasury, which reveals that the company possesses more than $12 million in tokens.
After merging with Abracadabra earlier this year, Wonderland Treasury withdrew around $57 million USDC from a MIM Curve liquidity pool. As a result, the collection has become significantly unbalanced. As traders flee the token for fear of more significant losses, a lack of liquidity might lead to a further de-pegging MIM.
Many other stablecoins have had their pegs loosened during this current crypto crisis. The USDD stablecoin of Tron recently lost its $1 peg and is now trading at $0.97. Stablecoins Tether (USDT) and FRAX (also known as Neutrino USD) have been trading below their $1 peg for a week.
Traders are selling their stablecoins in favor of dollars due to the market’s tremendous panic, as seen by the depegging. As a result, stablecoin suppliers are under increased pressure to maintain the peg and respect redemptions.
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