T O P
TheRealRickSorkin

Imagine you invest your savings into an asset worth multi-millions and then see the creator on Twitter saying "byee"


ersleid

He didn't even tell his supporters to 'stay strong' 😤


partymsl

That's honestly better than what Do Kwon is doing. Just tell them to fuck off.


No_Release6675

Or, " steady lads, deploying more capital "


Nichoros_Strategy

Back in my day, funds were safu


avernamethyst112

Tetranode is not the creator…the fact this has this many upvotes is alarming


TheRealRickSorkin

It was the guy Daniel that says it in his tweet. Byee


frstrtd_ndrd_dvlpr

At least he isn't planning to create MIM v2


theplushpairing

Yet…


TheRealRickSorkin

Byee


BlueSlushieTongue

TIL a new word “ponzinomics”


Goodk4t

Imagine an asset worth 250 mil called Magic Internet Money. The crypto market will crash hard and fast as it gets get rid of all the bloated speculative value, and question is if anything at all will remain once it hits rock bottom.


expatinjeju

6 months ago you would have had a million downvotes for saying that lol


havesomeagency

I knew shit was fucked when a literal meme coin about a dog mooned even though the creator made it as a joke


Goodk4t

Exactly. And let's not even get into all the jpgs of monkeys selling for millions. Feels like this will go down in economy textbooks as an example of a speculative bubble.


HazardIsFunny

Were you around for beanybabies? Shit was a weird time


Kriztauf

My aunt stabbed a man to death for a yellow one


Goodk4t

I didn't know about those till I watched this vid by Patrick Boyle https://youtu.be/6yc74wAYVVM


Phusentasten

BuT iT'S a GOoD prOjECt


JanS010

The team is strong! 🤡


mrthbrd

Don't forget the community!


honestlyimeanreally

*LTC PTSD intensifies*


Zealousideal_Ad5995

Is Tetranode really a dev of mim? Guy seems involved in a lot of stuff; sketch


BakedPotato840

Man who would've thought something called Magic Internet Money would implode


frstrtd_ndrd_dvlpr

It lived up to its name, it went *poof*


ersleid

It's up there with 'Internet Computer' in terms of naming choices 😂


partymsl

Can't wait for the next dumb multi billion dollar name.


edwardthefirst

dibs on "NextDumbCoin"


wolfblitzen84

i bought one of those at $250 cause of all the hype like a dope lol


league_starter

Huh? Aren’t you using an internet computer to post on Reddit


memoeslink

Do you guys not have phones?


trae_hung4

You realize your phone is a computer right 🤣


memoeslink

It was a reference, but OK.


trae_hung4

Oh lol what reference


memoeslink

[This](https://youtu.be/ly10r6m_-n8) reference.


Adventurous-Text-680

I mean their tokenomics is sound: https://docs.abracadabra.money/tokens/tokenomics /Sarcasm They basically throw leveraging in your face and even have a tool to loop your leveraging automatically to "increase returns". Their documentation reads like a joke and I originally thought it was fake. I then realized it was not and felt very bad for the fools thinking such leveraging schemes generates free money for you.


Dry-Hurry-7598

Clearly you haven’t seen the tokenomics properly, the depeg was based on rumours the that the protocol was insolvent which it wasn’t and so the peg has now gone up. mIm is a overcollaterlised stablecoin backed by crypto assets, it’s not a scam because it’s backed with value so it won’t implode like ust because you can always redeem $1 of MIM with $1 of crypto


Adventurous-Text-680

https://abracadabramoney.medium.com/peg-stability-measures-changing-yvdai-interest-rate-ca5c65c8b4b5 They changed interest rates for borrowing from zero to 1%. Crypto is in a downturn which means the collateral (the crypto) is getting liquidated. This puts pressure on MiM price as well as pushes crypto overall lower through liquidation (selling to potential buyers for a discount over market value). However the liquidation might occur at a time where nobody is willing to pay enough for the asset to cover the loaned MiM. The borrowed MiM will not get rebought back because it's the borrowers once you get margin called. In theory you could put more crypto into the loan banking on a depeg for profit. Incentive for a depeg. Loan becomes cheaper to pay back so profit. Now what will you do if you don't need to pay back your loan because you default? You sell the MiM for whatever you can get (maybe you already did that anyway at a higher price). There is no buyback since you defaulted so the trade becomes one sided (ie sell heavy). Buyers have incentive to bid low and a depeg benefits them to trade their 1 MiM for the 1$ of crypto the they purchased under a dollar. MiM is backed by crypto which is not very stable.


Dry-Hurry-7598

Yes I think we agree then, there was rumours that there was no one willing to purchase the collateral to cover the debt and the protocol had no funds to cover the bad debt so it was nearly insolvent that caused a cascade of people to sell their MiM in the fear that the protocol would no longer hold a 1:1 backing of its crypto collateral. But this was false and the protocol was not insolvent in anyway so now we are seeing the recovery of the peg back to the dollar which is impressive considering Btc behaviour. Plus yes crypto isn’t very stable but the liquidation mechanism you stated ensures that there is enough collateral to back 1:1


Adventurous-Text-680

Yes I agree. Basically MiM only needs to worry about liquidity of those assets. I think as long as we don't see massive dips they may be able to absorb the margin calls. I would be very skittish about MiM right now. The markets are very volatile right now.


Dry-Hurry-7598

Yh I agree I think as long as they are good quality crypto assets which there are only a handful you could say can be classed as that such as eth or Btc then I’d say it should always remain completely liquid imo. I mean I don’t think anyone will refuse to purchase eth or Btc at lower than market rates so it’s all about the crypto assets itself imo


odraencoded

\> abracadabra.money Fucking lol


EbonyHelicoidalRhino

How did it become undercollateralized tho? Isn't it supposed to be a fully backed stablecoin protected by a liquidation mechanism in case of price drop?


Adventurous-Text-680

I am not sure about that because I don't know the source, but one way could be due to using the assets for other trades. This means they are locked up this you don't enough liquidity. Basically they use your collateral to invest which can get locked up for a period of time. Depending on timing they likely don't have enough crypto on hand to cover everyone. This is why they push the idea of borrowing their token to stake for interest. They have a lower interest rate for borrowing than they give for you staking. This helps give them a longer period with the collateral so they can somehow try to earn that interest they are paying you for staking. The liquidation mechanism requires people willing to take the risk of the assets that are falling in value. Basically they are asking someone else to pay off the bad loan with the idea you will buy MiM from the market (placing demand on the coin) to do so. The incentive is that you get a discount on the value of the assets so it could be profitable if you think it will rebound or if you can sell it quick enough on the open market (creating more "supply" for that asset in terms of more selling). The issue is that the system gives incentives for a depeg. Either as a person with a loan being able to pay back the loan with effectively negative interest (ie 100$ loan paid with 95$) or for people wanting to buy liquidated collateral for even less. The larger the depeg the better the profit. The thing is you need people willing to buy the assets. If you start having lots of defaults due to flash crashes then it might hard to find those people. It's the problem with such loans because you can't force anyone to buy the assets and there is no authority that will cover that cost with a reserve. In other words, if I give you an offer to buy one Bitcoin for 19k when it's normally with 20k you probably would jump at it unless it drops to 18k during the offer. Now that offer of 19k is an insult and it's better to just buy directly from the market. The liquidator could offer lower but then it's not enough to cover the principal of the loan. This is why I imagine people were calling it undercollateralized because in bad markets the loans become toxic and nobody would want to buy them. That is my take.


drawb

Hocus Pocus: AAAND IT'S GONE. A magical disappearing act with also a rabbit, it seems.


bitsconnected

Bitcoin used to be referred to as such.


Fearless-Emphasis-87

A lot of people still call bitcoin a scam, and nobody is going to feel bad for someone who lost money in something called magic internet money


laulau9025

Best time for scammers, people not thinking straight...doing stupid stuff while panicking


chris_ut

Its the most accurately named crypto tbh


Dry-Hurry-7598

I mean if you really going to base an investment not by the tokenomics but by it’s name then that’s pretty bad. Now I’m Not comparing apple to MIM so relax, but both names if you don’t consider hein sight on how big apple is and just consider the name it’s just as ridiculous to call a computer company a name of a fruit. The name doesn’t matter it’s the tech behind it. The tokenomics for MIm isn’t a scam and it’s solvent so this sentiment doesn’t make sense


Misses-U

I'm surprised this outlasted Terra USD.


gamma55

It survived only because it was so utterly insignificant compared to UST. Couple hundred million doesn't put you in top positions on the list of things to burn down. But sure enough we are now down to MIM on that list, and down it will go.


Dry-Hurry-7598

It was backed with crypto right? Maybe not a very good one 😂 I think crypto backed stablecoins are risky already so why not go with eth or Btc


gamma55

Yeah. Pretty much why DAI quit being backed with a basket of crypto and simply became USDC with added risk.


Dry-Hurry-7598

Eh I think eth is still ok to use to tbh because the risk of holding crypto will be the same risk as having eth as a store of value, so having just eth or Btc isn’t too bad and it’s why it survived. I think eth is still the major backing of dai. Also Doesn’t Usdc also have reverses in Btc and eth as well as fiat ? I guess if I was to have a crypto stablecoin backed by anything it would be Bitcoin or eth backed if it had to be totalled decentralised


gamma55

Dunno if you noticed, but ETH and BTC have kinda lost a lot of value? DAI moved to primarily USDC backing to reduce the risk in case this happened. If Maker was still using a volatile basket right now DAI would be pretty close to following UST. But DAI maintains it’s peg because it’s backed by a lot of USDC, which is backed by cash and cash-equivalents. Not ETH or BTC.


Dry-Hurry-7598

Yes of course I know eth and Btc have lost value, but you realise the Usdc backing was mostly used to keep the price more stable than it use to be, it still survived an entire bear market with just eth backing and that was due to the liquidation mechanism that always maintained a 1:1 backing of eth to the amount of dai in dollars. The tokenomics is what kept dai alive when it was single asset collateral, the move to Usdc was to create more stability in an already relatively stable peg. It would definitely not follow ust that’s absurd to assume because ust fundamentally had no backing it maintained it’s peg but some supply mechanism that’s it. Really this is easy stuff to research. Dai was called sai before you should really research this.


Dry-Hurry-7598

The MIM tokenomics follow the dai model and it’s why it has recovered. The reason it dropped because there was rumours that their was insolvency in the protocol which was wrong and so the peg has come back to a healthier level of 0.9835 in a already dropping market which suggest having a overcollaterlised backing of crypto assets does work. It also didn’t need artificially repegging because of the liquidiation mechanism unlike ust so it’s definitely not like ust


Stone-D

The wording of that tweet by @danielesesta alone is a massive red flag for me. Glad I'm not involved in MIM. Hell, I only found out about it from the earlier post then promptly forgot about it.


No_Locksmith4570

And tbh the name, Magic Internet Money, is also kind of funny and questionable.


cc-d

wait are you telling me something literally called 'magic internet money' might not be the best vehicle for my life savings?


4y2ijyjyjyj

> @danielesesta alone is a massive red flag condensed that for you


rwang411

And his choice of profile pic


SnooBeans3889

Where can I short it


NorthernLightss

You can open a CDP with Abracadabra.money, borrow MIM, deposit into curve pool, and withdraw USDC/USDT/DAI and then just wait for it to fall.


ngb_jr

Tetra is not a dev lmfao Depeg beneficial for borrowers, only if borrowers didnt blow up


ngb_jr

But also hilarious how little this sub know about defi and how diff protocol works and thinking everything is luna Btw i do not like daniel too but at least get some basic knowledge before commenting


DrinkMoreCodeMore

The guy behind the horrible and sketch rebase token TIME is also involved with MIM. The main reason I knew not to touch it. Nothing but scammers and sketchy greasy slimeballs.


Child_4buser

You mean Daniele sesta, the guy who scammed a lot of people with wonderland? MIM is obviously a scam, but it sound ridicolous citing that guy when you talk about Ponzi scheme


Deardiarylul

So the guy Daniele that has multiple scam projects just to make him rich is saying its FUD?? I would not be surprised if something happend to him..kinda deserves it after ruining so many peoples life and he just keep doing it over and over.


Harold838383

Stablecoins are dropping like flies right now


Huijausta

It's a really good time to weed out the weakest projects.


GBR2021

Checks DAI price shrugs


--leockl--

Maybe everyone is just moving to USDD 😂


Monster_Chief17

Dashboard shows that the protocol is solvent and I would be surprised if MIM implodes tbh. It's not an algo stablecoin and it can't inflate. When liquidations happen MIM will be burned (if the code executes as intended). Not saying that anyone should invest in shitty projects right now but just giving credit where credit is due. Daniele fucked up with Wonderland big time but MIM is actually a good idea and I hope it survives.


Squezeplay

Shows how much fear there is right now, that so many people just reflexively dump even though it seems the protocol is still healthy.


NorthernLightss

Yup. Lots of FUD on Twitter going around with absolutelely nothing to back their claims. Fear is extremely high and worries about a recession are causing the lack of more bids coming in at these levels. Plus the funds that are under water and need to liquidate would prefer to sell OTC rather than dump on the market and incur slippage.


Dry-Hurry-7598

Yh my comment might age like milk but it seemed to recover because it actually was backed compared to ust. Also it’s quite funny and unfortunate that a Reddit page for crypto has people so ill informed about tokenomics that they don’t realise that this is actually a good sign that the protocol is working if it survives. Maybe that’s why a lot of people invested in Terra ust and are now calling every stablecoin and anything that provides high apr like a dex liquidity pool a Ponzi


NorthernLightss

LUNA / UST seemed like a an obvious ponzi to me, I'm not sure how so many people invested in it without any research of how it was backed. I'm sure high APY was the reason, and that attracted more and more people, literally a ponzi... A stable coin backed by... Their governance token?? That's a no from me. There are some actually cool projects like FRAX, MAI and RAI that are actually innovative and collateralized - in the case of RAI it is backed only by ETH and is not legged to the dollar, but made to be a decentralized stablecoin that does not need to rely on a third party holding cash in a bank.


NorthernLightss

$MIM is not going to crash crash like LUNA. It is backed by over collateralized CDPs, many of which generate revenue while they sit there. When the price of $MIM < $1, people are incentived to buy it and pay back their loans for less in terms of USD. Similar to Maker though the fees are much lower and you are able to borrow more with your collageral. Curve is one of the best and most used protocols for stable swaps and more. With the announce of a EUR stablecoin from Circle and many other Forex stablecoins, curve will still generate revenue in a bear market. Most DAOs are buying $CVX instead of $CRV in order to to direct emissions to their liquidity pools and incentive more users to deposit into the LP.


Dry-Hurry-7598

The problem is the volatility of crv, crypto backed stablecoins hold a lot of risk by itself so why not back your stablecoin with the two “safest” cryptos Btc or eth. They’re likely to have lower volatility than other coins and have the highest chance of staying valuable. Curve is a highly used protocol but crv isn’t that useful as you think. It’s like any exchanges token it has value but it’s not that good at retaining it’s value at all.


NorthernLightss

$MIM is not backed by CRV, the treasury holds CVX in order to increase the CRV rewards that are given to their specific $MIM pool. $MIM I'd backed by assets like Bitcoin and Ethereum. Go see for yourself,it seems you do not know how Abracadabra.money works.


Dry-Hurry-7598

Hm Yh maybe my only knowledge is that it’s overcollaterlised so I wasn’t surprised it survived pretty much. You are correct about Cvx


murray_paul

> $MIM I'd backed by assets like Bitcoin and Ethereum So it is backed by assets that have lost a third of their value in the last two weeks?


NorthernLightss

Yes, those that were over leveraged got liquidated, and the stable coin remained stable. Unlike Terra, they just keep printing more LUNA, UST was backed by nothing.


NorthernLightss

Ever heard of $DAI?


YuntHunter

I can't trust this post because some things you've said are incorrect/lies. Sifu was never involved in Abracadabra, Tetranode isn't a dev etc...


Arcc14

Regard police yes ahem that one right there that’s the one that is regarded


Bullface_

Don't know much about MIM, but CRV is definitely not a Ponzi by definition. You could argue that it is a bad investment though


travis-

half this subreddit started in crypto less than 6 months ago. to them everything that goes down is a ponzi scheme. most of them couldn't define ponzi without googling it.


metaversecom

Oh no,Another one went down, Anyways Let's guess the next one in the line, Possibly USDD.


gamethesystem1

Possibly? USDD has been depegging for a week. It’s absolutely going down.


Blacknight86420

Should see their Twitter. Saying down 3% isn't a depeg but within acceptable range.


gamethesystem1

People said the same thing on the LUNA page when it depegged.


Blacknight86420

Yeah some people are just delusional.


ArnoldShivajinagarr

You guys have no idea what Justin Sun is plotting. He will short squeeze everyone


gamethesystem1

You’re probably right.


Huck84

Sesta lost all my respect and money with Wonderland. Fuck i wish that had gone well.


Wendelne2

We need all those Ponzi dominos to fall before crypto can enter it's next bull run after a few years.


Shiitakeballz

I think stocks and the housing market are on wobbly legs as well. Ideally, if the bad players in crypto are weeded out before stocks/housing goes down, that would be great for the solid projects


orientalsniper

They will be back, don't worry.


NotFromMilkyWay

They all will implode. I'd bet they all used the money that is supposed to back stability to buy BTC at every dip. And with it coming down more and more, the financial backing comes down as well. It is only running on trust, I don't expect any stablecoin to actually be able to pay out every owner.


Squezeplay

There is no "they" who control the backing of MIM, its a defi protocol like DAI, individual users deposit collateral to mint MIM.


cantforgetthistime

Where does the deposited collateral get stored?


Squezeplay

In smart contracts.


Dry-Hurry-7598

Dude are you good you can literally track the funds coming in and out the protocol nobody is buying Btc you can literally see the transactions. That’s the blockchain remember 😂


gamethesystem1

USDC Is backed 1:1. That means they should be able to redeem it all.


paradoxally

Keyword: *should*


gamethesystem1

If you’re scared of USDC. I don’t think you should be in crypto. Good luck though.


paradoxally

I don't hold any stablecoins whatsoever. If I want crypto, I will buy bitcoin. For everything else, there's Mastercard.


gamethesystem1

Nothing wrong with your position.


Dry-Hurry-7598

Lol it’s regulated by the sec to make sure it stays solvent it’s just as solvent and backed as any major bank. If you’re scared of Usdc then you should be scared of any bank that’s regulated by the sec


paradoxally

Sure, but I don't trust any 3 letter agency.


Dry-Hurry-7598

Fair enough 😂


CalyShadezz

Not nearly as signifigant as USTC's implosion but still sucks for anyone who is holding it. IDK why anyone would keep a dollar in an algo stable at this point...


Dry-Hurry-7598

Its not a algo stablecoin just a crypto backed stablecoin with really bad cryptos backing it that are super volatile like crv. A backed stablecoin should be eth or Btc to minimise risk and still maintain decentralisation


CryptoDad2100

My man didn't get enough KFC Double Downs so he's making his own


northernedge24

Flush them all out!!!


Dry-Hurry-7598

It’s already corrected It’s not even a algo coin like ust


FappyChan

I should’ve made a coin and made millions. These kids wasting their life savings in crypto don’t even know this is exactly like the dot com bubble lmao


buddykire

Magic Internet Money is a SCAM


Zemnin

So another shit coin rugged its investors? It’s called magic internet money haha 😂


Dry-Hurry-7598

it’s recovered quite well my comments might age milk but it’s tokenomics aren’t a scam not like Terra


Zetanta

If you invest in MiM now you can make incredible profits when it goes back up again


UnknownBlades

I bet you bought Terra at 5$ because it was a sweet deal too yeah?


Dry-Hurry-7598

I mean he proved you wrong kinda it recovered somewhat back to 0.985 which is still a bit to go to $1, but it’s not like Terra at all if you look at the tokenomics it’s actually backed by overcollaterlised crypto to make sure $1 of MiM can be redeemed always for $1 of crypto like eth so it survived in arguably a worse crash than the one Terra faced because it actually has value backing it.


UnknownBlades

Look at his post history, he loves posting similar shit, regardless of the outcome


Dry-Hurry-7598

Oh my bad I guess a broken clock is right twice a day


LightninHooker

Didn't this ponzi blow up like 6 months ago? If people still there... they had it coming. Well, they had it coming always... now just more than ever. Zero sympathy


4y2ijyjyjyj

you're thinking of TIME/wonderland which was an OHM fork - same dev team basically though


paradoxally

Clearly another Ponzi, it's even in the name! All this proves is there's a ton of stupid money in crypto and thousands of grifters working together to take it.


Socialinfluencing

When I read " latest to blow up " I genuinely assumed it was positive for a second. Lmao rip.


Brunosaurs4

To be fair, something called Magic Internet Money seemed destined to blow up


Dry-Hurry-7598

But it survived its not like ust. It’s backed by crypto to ensure the value is always there


pedalfanatic1985

Stable coin = coin for beasts who sleep in stables


GoodPharma

USDD not looking so hot


IamZUUmusic

I actually didn't even realise MIM was still a thing. I thought it imploded with Abracadabra.


JustAFreindlyGuy

What happens to abracadabra money if MIM depegs? I have loans out with them… do I need to hurry and pay it back? What do is do?


littleczechfish

Whole depeg lasted like 3 hours and now it’s back. While it highlights the fragility of decentralized stables and certainly I wouldn’t put my wealth in this if you went to sleep last night and woke up this morning you wouldn’t have noticed.


Dry-Hurry-7598

It’s a good sign actually the fact that it can hold some quite risky crypto assets and not ones like eth and Btc shows that you can back a stablecoin with some more risky assets.


isthatrhetorical

random comment here but mr /u/Set1Less ive been watching your progress with great interest be neat if there were more like you here :)


Mashalot

Why would anyone use MIM when you could use USDC????


edwardthefirst

Disappearing acts are so Web 2.0


Toxcito

I've been calling out MIM and SPELL for months. The dev's are associated with failed projects and one of the primary dev's was literally behind the Quadriga rugpull. After the team found out that Sifu was behind that they swept it under the rug and tried to hide that they knew about it.


Dry-Hurry-7598

I mean the devs could be bad but the tokenomics are actually legitimate


xsanchez21

Well, now we see the magic.


techhouseliving

Is ftm at risk?


UcharsiU

Ahh, Danielle. The one behind Wonderland.money scam. Yes, we can trust him... 🤣🤣🤣🤣


Lunar_Horticulture

They should've used the OG bitcoin 'Magic internet money' wizard for the logo, clearly where they went wrong.


DrPagliacci

Who are these people using this junk?


JasmineAndFlowers

Fine, I will short this with size now and make up for all the bearmarket losses in a single trade


khaste

Fool..... money... part


Mike941

I guess it's last trick is vanishing into thin air.


MyNameIsMee_

Is this a comedy post or real ???? “Magic internet Money” “Abracadabra money project” “The infamous 0xSeafood” “Ponzinomics” Wtf is going on?!?? Why are you involved in any of this ? Listen to yourself


money_stuff2020

Hypothetically, how would one go about putting a short on MIM? How about CRV?


todd1art

I had no idea Bitcoin was such a scam. I invested $700 ten days ago and now I am at $400. Coinbase App refuses to give me access to my money. I am watching my investment disappear every day. I am unable to get any Bitcoin to send. I am being robbed by Coinbase every day. The Government needs to prosecute unethical companies like Coinbase.


Spacedude2187

I remember 6 months ago when mim was all the rave lol


Thoughtmosphere

Found some comics on the Celsius and 3AC insolvency. MIM next? Celsius: [https://twitter.com/MeetWawa/status/1536987218463535104](https://twitter.com/MeetWawa/status/1536987218463535104) 3AC: [https://twitter.com/MeetWawa/status/1538440437299458048](https://twitter.com/MeetWawa/status/1538440437299458048)


Hemisphere-1

What is there even to talk about for funk sake this is not even note worthy.


dakinekine

Never heard of this stable coin. Who the f is buying this stuff?? Magic Internet Money 😂


Sarcatechist

The name “Magic Internet Money” should have been a red flag but we were dumb, zealous and hyperactive


propfriend

Bitcoin, Etherium, Doge. The rest will be washed away.


JohnGalt3

2 of those for sure.


Chucking100s

Where to short with leverage?