ABRACADABRA ACCRUED $12M IN BAD DEBT RESULTED TERRA’S FALL: AUTISM CAPITAL
Magic Internet Money (MIM), a stablecoin denominated in US dollars in the Abracadabra ecosystem, joins a growing list of tokens that lose $ 1 during the crypto winter. The sudden removal of the MIM token began about June 17, 7:40 pm ET, which saw the price of the token drop to $ 0.926 in just three hours.
Terra LUNA and TerraUSD (UST) TerraUSD (UST) deaths not only affected investors but also had a negative impact on many crypto projects, including the Abracadabra MIM token token - as alleged by the handle of Twitter @AutismCapital.
Citing an internal report, AutismCapital said Abracadabra accumulated $ 12 million in bad debt as a direct result of Terra's sudden collapse "because the closure could not have happened immediately to pay off MIM protocol loans."
Daniel Sestagalli, the founder of Abracadabra, however, has denied the allegations of insolvency by ensuring he has enough money to pay off the accumulated debt - caused by falling MIM prices. Sestagalli said:
"[Abracadabra] Treasury has more money than debt and $ CRV is important in regulation."
Doubling his position, Sestagalli also publicly shared the treasurer's address containing 12 million assets while urging affected investors to ensure the same using on-chain data.
On the other hand, Autism Capital alleges that Sestagalli's bad credit was created five days ago and shared a screenshot below showing his similar conversation to MIM's Discord team.
Sestagalli's interview on the MIM Discord team. Source: @AutismCapital
Although the risk of financial instability continues to threaten the Abracadabra protocol, whether by MIM treasurer who continues to lose value or bad credit created, investors are advised to monitor market volatility and conduct their own research (DYOR) before making investment decisions.
Five days ago, on June 13, the price of the Stablecoin protocol USDD dropped to $ 0.97 in large crypto trading.
To help during market turmoil, Tron DAO Reserve announced it had secured 700 million USD Coin (USDC) to protect the USD stake. As a result of the fundraising, the team behind stablecoin stated that the collateralization rate of USDD has now been increased to 300%.