By - Set1Less
Imagine you invest your savings into an asset worth multi-millions and then see the creator on Twitter saying "byee"
He didn't even tell his supporters to 'stay strong' 😤
That's honestly better than what Do Kwon is doing. Just tell them to fuck off.
Or, " steady lads, deploying more capital "
Back in my day, funds were safu
Tetranode is not the creator…the fact this has this many upvotes is alarming
It was the guy Daniel that says it in his tweet. Byee
At least he isn't planning to create MIM v2
TIL a new word “ponzinomics”
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.
6 months ago you would have had a million downvotes for saying that lol
I knew shit was fucked when a literal meme coin about a dog mooned even though the creator made it as a joke
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.
Were you around for beanybabies? Shit was a weird time
My aunt stabbed a man to death for a yellow one
I didn't know about those till I watched this vid by Patrick Boyle
BuT iT'S a GOoD prOjECt
The team is strong! 🤡
Don't forget the community!
*LTC PTSD intensifies*
Is Tetranode really a dev of mim? Guy seems involved in a lot of stuff; sketch
Man who would've thought something called Magic Internet Money would implode
It lived up to its name, it went *poof*
It's up there with 'Internet Computer' in terms of naming choices 😂
Can't wait for the next dumb multi billion dollar name.
dibs on "NextDumbCoin"
i bought one of those at $250 cause of all the hype like a dope lol
Huh? Aren’t you using an internet computer to post on Reddit
Do you guys not have phones?
You realize your phone is a computer right 🤣
It was a reference, but OK.
Oh lol what reference
I mean their tokenomics is sound:
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.
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 $1 of crypto
They changed interest rates for borrowing from zero to 1%.
Crypto is in a downturn which means the collateral (the crypto) is getting liquidated. This puts pressure on MiM price as well as pushes crypto overall lower through liquidation (selling to potential buyers for a discount over market value). However the liquidation might occur at a time where nobody is willing to pay enough for the asset to cover the loaned MiM.
The borrowed MiM will not get rebought back because it's the borrowers once you get margin called. In theory you could put more crypto into the loan banking on a depeg for profit. Incentive for a depeg. Loan becomes cheaper to pay back so profit.
Now what will you do if you don't need to pay back your loan because you default? You sell the MiM for whatever you can get (maybe you already did that anyway at a higher price). There is no buyback since you defaulted so the trade becomes one sided (ie sell heavy). Buyers have incentive to bid low and a depeg benefits them to trade their 1 MiM for the 1$ of crypto the they purchased under a dollar.
MiM is backed by crypto which is not very stable.
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
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.
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
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?
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.
Hocus Pocus: AAAND IT'S GONE.
A magical disappearing act with also a rabbit, it seems.
Bitcoin used to be referred to as such.
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
Best time for scammers, people not thinking straight...doing stupid stuff while panicking
Its the most accurately named crypto tbh
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
I'm surprised this outlasted Terra USD.
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.
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
Yeah. Pretty much why DAI quit being backed with a basket of crypto and simply became USDC with added risk.
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
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.
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.
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
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.
And tbh the name, Magic Internet Money, is also kind of funny and questionable.
wait are you telling me something literally called 'magic internet money' might not be the best vehicle for my life savings?
> @danielesesta alone is a massive red flag
condensed that for you
And his choice of profile pic
Where can I short it
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.
Tetra is not a dev lmfao
Depeg beneficial for borrowers, only if borrowers didnt blow up
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
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.
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
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.
Stablecoins are dropping like flies right now
It's a really good time to weed out the weakest projects.
Checks DAI price
Maybe everyone is just moving to USDD 😂
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.
Shows how much fear there is right now, that so many people just reflexively dump even though it seems the protocol is still healthy.
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.
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
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.
$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.
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.
$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.
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
> $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?
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.
Ever heard of $DAI?
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...
Regard police yes ahem that one right there that’s the one that is regarded
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
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.
Oh no,Another one went down, Anyways
Let's guess the next one in the line, Possibly USDD.
Possibly? USDD has been depegging for a week. It’s absolutely going down.
Should see their Twitter. Saying down 3% isn't a depeg but within acceptable range.
People said the same thing on the LUNA page when it depegged.
Yeah some people are just delusional.
You guys have no idea what Justin Sun is plotting. He will short squeeze everyone
You’re probably right.
Sesta lost all my respect and money with Wonderland. Fuck i wish that had gone well.
We need all those Ponzi dominos to fall before crypto can enter it's next bull run after a few years.
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
They will be back, don't worry.
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.
There is no "they" who control the backing of MIM, its a defi protocol like DAI, individual users deposit collateral to mint MIM.
Where does the deposited collateral get stored?
In smart contracts.
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 😂
USDC Is backed 1:1. That means they should be able to redeem it all.
If you’re scared of USDC. I don’t think you should be in crypto. Good luck though.
I don't hold any stablecoins whatsoever.
If I want crypto, I will buy bitcoin.
For everything else, there's Mastercard.
Nothing wrong with your position.
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
Sure, but I don't trust any 3 letter agency.
Fair enough 😂
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...
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
My man didn't get enough KFC Double Downs so he's making his own
Flush them all out!!!
It’s already corrected It’s not even a algo coin like ust
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
Magic Internet Money is a SCAM
So another shit coin rugged its investors? It’s called magic internet money haha 😂
it’s recovered quite well my comments might age milk but it’s tokenomics aren’t a scam not like Terra
If you invest in MiM now you can make incredible profits when it goes back up again
I bet you bought Terra at 5$ because it was a sweet deal too yeah?
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.
Look at his post history, he loves posting similar shit, regardless of the outcome
Oh my bad I guess a broken clock is right twice a day
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
you're thinking of TIME/wonderland which was an OHM fork - same dev team basically though
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.
When I read " latest to blow up " I genuinely assumed it was positive for a second. Lmao rip.
To be fair, something called Magic Internet Money seemed destined to blow up
But it survived its not like ust. It’s backed by crypto to ensure the value is always there
Stable coin = coin for beasts who sleep in stables
USDD not looking so hot
I actually didn't even realise MIM was still a thing. I thought it imploded with Abracadabra.
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?
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.
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.
random comment here but mr /u/Set1Less ive been watching your progress with great interest
be neat if there were more like you here :)
Why would anyone use MIM when you could use USDC????
Disappearing acts are so Web 2.0
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.
I mean the devs could be bad but the tokenomics are actually legitimate
Well, now we see the magic.
Is ftm at risk?
The one behind Wonderland.money scam.
Yes, we can trust him... 🤣🤣🤣🤣
They should've used the OG bitcoin 'Magic internet money' wizard for the logo, clearly where they went wrong.
Who are these people using this junk?
Fine, I will short this with size now and make up for all the bearmarket losses in a single trade
Fool..... money... part
I guess it's last trick is vanishing into thin air.
Is this a comedy post or real ????
“Magic internet Money”
“Abracadabra money project”
“The infamous 0xSeafood”
Wtf is going on?!?? Why are you involved in any of this ? Listen to yourself
Hypothetically, how would one go about putting a short on MIM? How about CRV?
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.
I remember 6 months ago when mim was all the rave lol
Found some comics on the Celsius and 3AC insolvency. MIM next?
What is there even to talk about for funk sake this is not even note worthy.
Never heard of this stable coin. Who the f is buying this stuff?? Magic Internet Money 😂
The name “Magic Internet Money” should have been a red flag but we were dumb, zealous and hyperactive
Bitcoin, Etherium, Doge. The rest will be washed away.
2 of those for sure.
Where to short with leverage?