Menu
  • Latest
  • Prices
  • NFT
  • Coins
    • Bitcoin
    • Ethereum
    • Cardano
    • Ripple
    • Solana
    • Shiba inu
    • Dogecoin
    • Algorand
    • Litecoin
  • GEO
    • Ukraine
    • China
    • India
    • South Korea
    • North Korea
    • El Salvador
    • Switzerland
    • Nigeria
    • Russia
    • Latin America
  • Wiki
Language:

Coin Prologue
  • Latest
  • Prices
  • NFT
  • Coins
    • Bitcoin
    • Ethereum
    • Cardano
    • Ripple
    • Solana
    • Shiba inu
    • Dogecoin
    • Algorand
    • Litecoin
  • GEO
    • Ukraine
    • China
    • India
    • South Korea
    • North Korea
    • El Salvador
    • Switzerland
    • Nigeria
    • Russia
    • Latin America
  • Wiki
  • News

Defi Protocol Abracadabra’s Stablecoin MIM Briefly Slides to $0.91 During the Crypto Market Rout

  • Ralph Smith
  • 19/06/2022
  • 3 minute read
Total
0
Shares
0
0
0
0
0
0

Amid this weekend’s crypto market carnage, a crypto asset called Magic Internet Money (MIM) briefly fell to a low of $0.914 per unit and on Saturday, June 18 another stable coin fell below the $1.00 peg. The drop in the Abracadabra-issued stablecoin follows the recent Terrausd (UST) failure and last week’s USDD volatility.

Stablecoin Magic Internet Money loses $1 parity but regains strength after drop to $0.91

In mid-May 2022, the entire world witnessed an algorithmic stablecoin called terrausd (UST) drop out of $1 parity and drop below a US penny in value. In fact, UST’s failure obliterated the entire terra blockchain ecosystem of tokens to the point of near worthlessness.

Last week, Bitcoin.com News reported that with Tron’s algorithm stablecoin USDD, it has dropped to as low as $0.95 per unit. The Tron Reserve DAO has added significantly to reserves like USDC andadded TRXand maintained the token’s overcollateralization.

Despite the addition of funds, on June 18. the USDDfell to a low of $0.948 per unit, and the crypto token is now exchanging at $0.964 at the time of writing at 6:05 PM ET.

On the same day, Abracadabra’s stablecoinMagic Internet Money (MIM)also fell below the $1 parity of its assets to a low of $0.914 per unit. using a protocol called Abracadabra.money allows users to add collateral and create MIMs, and today there are 197,674,194 MIMs in circulation.

MIM is utilized on a variety of blockchains, including Ethereum, Phantom, BSC, and Avalanche.Although it fell to $0.91, MIM rebounded on Saturday, and at 6:05 PM ET, was at $0.992 per unit. Trading below $1 parity, MIM attracted a lot of attention during the day as “MIM de-pegging” became a trending theme on social media. The day before, one Twitter accountsaidthat MIM was “about to depeg [again] with a 95.8% liquidity imbalance. There is only $6 million of liquidity left in the pool.”

Abracadabra dispels insolvency rumors, addresses tax evasion case

{47

Additionally, Abracadabra published ablog postaddressing “a large number of fake Twitter threads.” Abracadabra stated that the false information “caused extreme volatility affecting the liquidity of the MIM peg and MIM-3 pools in curve finance.”

“One of the central pieces of FUD revolves around Abracadabra’s financial structure.” Abracadabra’s blog post noted that ” Our operating treasury, not including SPELL tokens, currently (at the time of writing) holds over $13.2M in assets. Roughly half of the treasury is in MIM stablecoins and the other half in CRV tokens, which are the basic assets for us to hold.” A blog post on the decentralized finance (defi) project also states.

If you are looking for exact amounts, the treasury holds 6,619,923.5 MIM and 10,380,153.06 CRV tokens.

Abracadabra’s blog post also asks those with outstanding loans to pay off the balance while the peg is low in order to rebalance the MIM-3pool.

“As we write this article, the health of the curve pool continues to improve and we fully expect the MIM peg to recover soon. Additionally, we will share a more detailed schedule as to when and how the repayment will take place,” Abracadabra’s blog post concludes.

In addition to USDD and MIM, the stablecoinneutrino usd (USDN)has recently been volatile below $1 parity. Trading at $1 at 6:05 PM ET, USDN fell to $0.931 per unit early Saturday.

What do you think about the stablecoin, Magic Internet Money (MIM), being de-pegged on Saturday, and what do you think about Abracadabra’s blog post remarks? Let me know what you think about this subject in the comments section below.

Image credits: Shutterstock, Pixabay, Wiki Commons

Companies: Twitter
Ralph Smith

Cryptocurrency geek. Met with Bitcoin and altcoins back in 2011, when the price of BTC was about 10$. Writing articles since 2014 to these days.

You May Also Like
View Post
  • 1
  • 2 min

Report: Korean Central Bank to Gain Right to Probe Virtual Asset Entities After Financial Regulator Drops Opposition

View Post
  • 3
  • 2 min

Financial Analyst Charles Nenner Warns About the End of the US Dollar and Its Consequences

View Post
  • 2 min

Global Reserves Held in US Dollars Fell to Less Than 50% — Official States It Has Become a ‘Toxic’ Currency

View Post
  • 2 min

White House Economist Warns China Wants to Weaken US Dollar’s Reserve Currency Status — Senator Says Biggest Threat Comes From Within

View Post
  • 2 min

Putin and Saudi Crown Prince Discuss Potential BRICS-Saudi Arabia Collaboration

View Post
  • 2 min

Wallet Bot on Telegram Adds Bitcoin Support to Web Interface Following Tether Integration 

Recent Posts
  • Report: Korean Central Bank to Gain Right to Probe Virtual Asset Entities After Financial Regulator Drops Opposition

    View Post
  • Financial Analyst Charles Nenner Warns About the End of the US Dollar and Its Consequences

    View Post
  • Global Reserves Held in US Dollars Fell to Less Than 50% — Official States It Has Become a ‘Toxic’ Currency

    View Post
  • White House Economist Warns China Wants to Weaken US Dollar’s Reserve Currency Status — Senator Says Biggest Threat Comes From Within

    View Post
Coin Prologue Coin Prologue
Made with ❤️Love in 🇺🇦Ukraine ©2021 — 2022

Input your search keywords and press Enter.