{"id":464751,"date":"2022-06-18T08:35:13","date_gmt":"2022-06-18T05:35:13","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/magic-internet-money-token-depegs-as-terra-luna-domino-effect-persists\/"},"modified":"2022-06-18T08:35:13","modified_gmt":"2022-06-18T05:35:13","slug":"magic-internet-money-token-depegs-as-terra-luna-domino-effect-persists","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/magic-internet-money-token-depegs-as-terra-luna-domino-effect-persists\/","title":{"rendered":"# Magic Internet Money token depegs as Terra (LUNA) domino effect persists"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3bc176a3c1c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3bc176a3c1c\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/magic-internet-money-token-depegs-as-terra-luna-domino-effect-persists\/#%E2%80%9D_Magic_Internet_Money_token_depegs_as_Terra_LUNA_domino_effect_persists_%E2%80%9C\" >&#8221; Magic Internet Money token depegs as Terra (LUNA) domino effect persists &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Magic_Internet_Money_token_depegs_as_Terra_LUNA_domino_effect_persists_%E2%80%9C\"><\/span>&#8221; Magic Internet Money token depegs as Terra (LUNA) domino effect persists &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>Magic Internet Money (MIM), a US dollar-pegged stablecoin of the Abracadabra ecosystem, joins the growing list of tokens losing their $1 value amid an untimely crypto winter. The sudden de-pegging of the MIM token commenced roughly on June 17, 7:40 pm ET, which saw the token\u2019s price drop to $0.926 in just three hours.<\/p>\n<p>Terra\u2019s LUNA and TerraUSD (UST) death spiral not only affected the investors but also had a negative impact on numerous crypto projects, including Abracadabra\u2019s MIM token ecosystem \u2014 as alleged by <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> handle @AutismCapital. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-06\/78f92bc2-10d1-432d-b449-618476c77374.png\"><figcaption style=\"text-align: center;\">Depegging of Magic Internet Money (MIM) token price chart. Source: CoinMarketCap<\/figcaption><\/figure>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/AutismCapital\/status\/1537941577309356034\">Citing<\/a> an insider scoop, AutismCapital claimed that Abracadabra accrued $12 million in bad debt as a direct result of Terra\u2019s sudden downfall \u201cbecause liquidations couldn&#8217;t h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>en fast enough to cover the protocol&#8217;s MIM liabilities.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">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.<\/p>\n<p>We can&#8217;t believe that a project called Magic Internet Money has been acting irresponsibly either.<\/p>\n<p>Details:<\/p>\n<p>\u2014 Autism Capital  (@AutismCapital) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/AutismCapital\/status\/1537941573383561217?ref_src=twsrc%5Etfw\">June 17, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Daniele Sestagalli, the founder of Abracadabra, however, refuted the claims of insolvency by ensuring to have enough funds to pay back the piling debts \u2014 which has been attributed to the falling MIM prices. Sestagalli stated:<\/p>\n<blockquote><p>\u201c[The Abracadabra] Treasury has more money than the debt and $CRV are valuable for the protocol.\u201d<\/p><\/blockquote>\n<p>Doubling down on his stance, Sestagalli further publicly shared the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/CUzfAhI0HD\">treasury address<\/a> holding $12 million in assets while asking concerned investors to verify the same using on-chain data.<\/p>\n<p>On the other hand, Autism Capital alleged that Sestagalli\u2019s bad debt was created five days ago and shared the below screenshot showing his conversation about the same on MIM\u2019s Discord group.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-06\/27744d81-f873-4397-9f55-92ae5f2f44d1.jfif\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\">Sestagalli\u2019s conversation on MIM Discord group. Source: @AutismCapital<\/figcaption><\/figure>\n<p>While the risk of insolvency continues to threaten the Abracadabra protocol, either through the MIM treasury continuing to dump in value or more bad debt created, investors are advised to keep track of market fluctuations and do their own research (DYOR) before making investment decisions.\u00a0<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>USDD stablecoin falls to $0.97, DAO inserts $700M to defend the peg<\/em><\/strong><\/p>\n<p>Five days ago, on June 13, Stablecoin protocol USDD\u2019s price dipped to $0.97 on major crypto exchanges.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">1\/ And it&#8217;s starting<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24USDD&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$USDD<\/a> is currently just 92% collateralized by the Reserves (even considering <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24TRX&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$TRX<\/a> funds) \u26a0\ufe0f<\/p>\n<p>If you subtract <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24TRX&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$TRX<\/a>, it turns out collateralization ratio is currently 73%<\/p>\n<p>Also, the 140M <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24USDT&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$USDT<\/a> are not really USDT, but jUSDT  <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/fKYaIQEd1D\">pic.twitter.com\/fKYaIQEd1D<\/a><\/p>\n<p>\u2014 Res \u00ae\ufe0f (@resdegen) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/resdegen\/status\/1536005536646320128?ref_src=twsrc%5Etfw\">June 12, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>To help out during 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 ratio of USDD is now boosted to 300%.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/magic-internet-money-token-depegs-as-terra-luna-domino-effect-persists\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Magic Internet Money token depegs as Terra (LUNA) domino effect persists &#8220; Magic Internet Money (MIM), a US dollar-pegged stablecoin of the Abracadabra ecosystem, joins the growing list of tokens losing their $1 value amid an untimely crypto winter. The sudden de-pegging of the MIM token commenced roughly on June 17, 7:40 pm ET,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":464752,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDYvOThiYjgwNGItNmQ1ZS00OTZlLWI4NjAtNDc0Y2JlNzNlYTE4LmpwZWc=.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74894,74863,76153,75493,75541,117],"class_list":["post-464751","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-blockchain","tag-cryptocurrencies","tag-dollar","tag-stablecoin","tag-volatility","tag-business"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/464751","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=464751"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/464751\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/464752"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=464751"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=464751"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=464751"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}