Although the CEOs of the exchange, CZ and SBF, made friendly statements, investors prefer to sell. Amid the conflict between FTX and Binance, one more stablecoin has lost its dollar stability.
MIM stablecoin lost peg while storing FTX Token (FTT)
Magic Internet Money (MIM) is a stablecoin produced by Abracadabra. It uses FTT Token to keep the dollar stable. 33% of Abracadabra pools are made up of FTT.
The MIM token has lost its solar stability as the FTT token has come under fire since the start of the week. It fell below $1 in the early morning today.
Information provided by Coinecko shows that MIM price briefly melted to $0.9520 earlier today. Thus, it recorded its lowest level since Terra’s collapse in May. The cost loss exceeding 30% of FTT was directly effective in this decrease. According to Abracadabra’s website, the FTX Token (FTT) was the largest collateral to support MIM. FTT is 33% of the reserves locked to keep the MIM token stable in Abracadabra’s pools.
Due to what happened in the middle of Binance and FTX, the FTT price dropped by double digits on November 7. It is currently trading above $18, slowly recovering after falling as low as $15 during the day.
Decentral Park Capital portfolio manager Lewis Harland says the MIM token will be in trouble if FTT drops to $6.76:
FTT is the single largest collateral asset for MIM, whose total value is currently locked at $120 million. FTT has a liquidation price of $6.76.
FTT price fell below Caroline Ellison’s offer to CZ
Koindeks.com As you follow, Binance CEO shared that Alameda Research will sell their $ 2.1 billion FTT token due to the risk of bankruptcy. Thereupon, Caroline Ellison, CEO of Alameda, offered CZ $22 per unit for tokens. However, the FTT price fell below Ellison’s offer during the day. For now, it is recovering after FTX CEO Sam Bankman-Fried’s statements on Twitter.
According to SBF’s tweet recently, Binance signed a non-binding letter of intent (LOI) with the goal of purchasing the FTX exchange entirely. According to Binance CEO Changpeng Zhao, this will help solve FTX’s liquidity crunch.
The FTT price gained 45% in about an hour after SBF’s tweet above. Meanwhile, Bitcoin had the opportunity to rise above $20,000. Binance’s native token, BNB Coin, is rising over 15%. After spending most of the day in the $320 region, it climbed as high as $400.