The Terra $LUNA aftermath: USD-pegged stablecoin, Magic Internet Money , $MIM, depegs to $0.92.
Daniele Sestagalli, the founder of Abracadabra, however, refuted the claims of insolvency by ensuring to have enough funds to pay back the piling debts — which has been attributed to the falling MIM prices. Sestagalli stated:Doubling down on his stance, Sestagalli further publicly shared theholding $12 million in assets while asking concerned investors to verify the same using on-chain data.
On the other hand, Autism Capital alleged that Sestagalli’s bad debt was created five days ago and shared the below screenshot showing his conversation about the same on MIM’s Discord group.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 before making investment decisions.