Share this article
MIM Stablecoin Suffers Flash Crash Amid $6.5M Exploit
Certrik suggests the exploit could be due to a rounding error.
Updated Mar 8, 2024, 8:41 p.m. Published Jan 30, 2024, 12:34 p.m.
Make us preferred on Google
The stablecoin issued by decentralized platform Abracadabra.money (MIM), suffered a flash crash to $0.76 after reports of a $6.5 million exploit.
Blockchain security firm PeckShield published initial details of the exploit at 11:35 UTC Tuesday, adding that the attacker was funded from Tornado Cash, a sanctioned privacy protocol.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Cetrik said that "early indications point to a rounding error being the root cause."
MIM developers said that the Abracadabra DAO will be buying back the stablecoin, which is designed to trade at $1, from the market to preserve the peg. It was trading around $0.94 at press time, per CoinMarketCap.
"We are aware of an exploit involving certain cauldrons on Ethereum," MIM wrote on X. "Our engineering team is triaging and investigating the situation. To the best of its Ability, the DAO treasury will be buying back MIM from the market to then burn. More updates are coming."
The stablecoin also fluctuated in 2022 during the collapse of FTX, as a third of MIM's collateral was in FTT, FTX's native token. As FTT crumbled, MIM fell to $0.95 before trading back to parity.
The project came under scrutiny earlier this year after a proposal was made to transition power from the decentralized Abracadabra DAO to a centralized entity with lawyers and trustees.
More For You
Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.
What to know:
Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token.
The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility.
More For You
Circle faces first major 'threat' for institutional dollars from Tether’s USAT
While Circle's USDC has operated without a "credible domestic competitor," Tether's USAT has the potential to shake up the landscape, analysts said.
What to know:
- Analysts said USAT, the U.S.-focused stablecoin by Tether, could become the first credible domestic competitor to Circle's USDC token.
- USAT is "a threat to USDC" and could gain an edge through institutional partners and global USDT connectivity, Crypto is Macro Now's Noelle Acheson said.
- ClearStreet's Owen Lau called USAT “a manageable risk” for Circle, and noted potential "cannibalization" risk between Tether's two tokens.
Top Stories
