MIM Stablecoin Warning At Risk Of Depeg Due To FTT Deep Fall

November 8, 2022 - Around 2 mins mins to read

The MIM stablecoin has been warned that there is a risk of losing pegs due to the FTT connection. Stablecoins at one point depeg deep to 0.96%.

MIM is being warned about possible loss of peg due to negative news and deep price drop of FTT token. Today, this stablecoin had a time when the peg dropped deeply to the 0.96% area.

24h MIM price chart. Source: CoinMarketCap

MIM is a stablecoin that works with DAI, with a standard rate minting of collateral. One of the main reasons for this volatility is attributed to FTT. Accordingly, most of the collateral to mint MIM is in the form of FTT.

⚠️ WARNING ⚠️ $MIM (stablecoin – Magic Internet Money) is depegging off $1 as we speak, please do what's needed ASAP.

MIM is partly backed by $FTT, if FTT price falls further, MIM will go into a death spiral as well.

Please RT if you can. pic.twitter.com/IDcdEfPHLJ
— Rock ???? (@DataaRocks) November 8, 2022

According to data from MIM Abracadabra’s website, the amount of FTT backing MIM is worth about 108 million USD (~30%). However, on 6/11, a large amount of MIM loans with FTT collateral were repaid, bringing the debt ratio down from 35% to 9%. However, very soon, $27 million in MIM value was minted from FTT.

In parallel with the recent negative information related to FTT, MIM has previously been entangled in controversies surrounding the issue of “bad debt”. With the demise of Terra in May, 64% of MIM’s collateral is in UST, causing the stablecoin to continue to plummet towards the $0.94 mark.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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