Stablecoin Magic Internet Money (MIM) tumbled 5% from the $1 stable after Binance’s FTT sell-off decision.
over-collateralized a decentralized credit institution Abracadabra Money’s is the issuer MIME stablecoin for a short time during the day, according to Coinecko data. close to 5% depreciating 0.95 after trading in dollars 0.98 rose to dollars. Analysts say that the depreciation of MIM reserves 18% of constituent from FTT suggested that it may be due.
Experts say investors are FTX’s sister company Alameda Research’s to be experienced from the FTT given in return for the loan an excessive loss your stablecoin to financial integrity because he thinks it will hurt selling pressure may occur. pointing out.
On the other hand, Abracadabra Money follows a strategy that liquidates loans if the collateral it receives for loans falls below a certain price to ensure its reserves are over-collateralized. As part of this strategy, Alameda Research has approximately FTT worth $126 million with guarantee safe it seems.
Data from Dune Analytics shows MIM trading volume on the decentralized finance (DeFi) platform Curve Finance compared to yesterday. 89% increase by living $15 million it shows up. In addition, MIM liquidity on the platform compared to yesterday. It is seen that there is a decrease of 7.76%.
However, investors are selling their FTT due to insufficient liquidity in the event of a possible liquidation of the company. difficulty taking into account the fears he might experience.