Autism Capital alleged that Abracadabra racked up $12 million in bad debt as a direct result of Terra’s abrupt failure, although CEO Daniele Sestagalli rejected this accusation.
The Abracadabra ecosystem’s Magic Internet Money (MIM), a US dollar-pegged stablecoin, has joined the growing list of tokens losing its $1 worth due to an untimely crypto winter. The de-pegging of the MIM token began about 7:40 p.m. ET on June 17, and the token’s price dropped to $0.926 in only three hours.
According to Twitter account @AutismCapital, Terra’s LUNA and TerraUSD (UST) death spiral harmed not just investors but also a number of crypto initiatives, including Abracadabra’s MIM token ecosystem.
According to AutismCapital, Abracadabra racked up $12 million in bad debt as a result of Terra’s abrupt demise because liquidations couldn’t materialise fast enough to meet the protocol’s MIM liabilities.
The founder of Abracadabra, Daniele Sestagalli, rejected the claims of insolvency. He ensured that the company had sufficient finances to pay off the mounting debts.
Sestagalli doubled back on his stance by publicly sharing the treasury address, which held $12 million in assets, and urging worried investors to double-check the information using on-chain data.
Autism Capital, on the other hand, said that Sestagalli’s bad debt was generated just five days ago and published a screenshot of his communication about it on MIM’s Discord channel.
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