Let's review the story of $IMF
This wave, @intlmemefund, which used loop lending for memecoins and boasted about its capabilities, successfully pulled itself from 0.05 to a high of 2.2u.
Then it started launching its own 'platform coin' (mineable coin) $IMF for loop lending.
🌟Risks of Loop Lending
Loop lending, in DeFi, is essentially multiple rounds of borrowing and lending to maximize capital utilization.
It's mainly used for USDT/USDC lending, where interest rates can be very high.
A small number of aggressive individuals collateralize altcoins to borrow USDT, and when prices plummet, liquidation is likely to occur.
Every time ETH crashes, a bunch of people on-chain wait for liquidation; every time $CRV crashes, a bunch of people wait to pick up the pieces – it's the same principle.
And #memecoin has even greater volatility, so the risk of loop lending is higher.
🌟What you thought was loop lending operation vs. what the dev actually did
Many retail investors thought that @intlmemefund's operation involved collateralizing memecoins, borrowing USDS, and then using USDS to buy MEMECOIN again, leading to a spiraling ascent.
However, @intlmemefund didn't do that. Instead, they first opened up collateralization for their own 'platform coin' IMF, and then basically collateralized it themselves, making people think the price would pump, and then they sold it themselves.
(https://t.co/YOduAUUgJ5) This address belongs to the IMF dev. ✍️On-chain data doesn't lie.
🌟A series of liquidations yesterday
Many people are curious why $IMF's price didn't rise but fell despite various bribes, especially after the argument with $APU the day before yesterday, which seemed to 'tear its clothes apart,' leading to a direct -85% drop.
This must be a 'whale,' someone who understands 'DeFi' very well, and someone who knows how to 'make money.'
After all, after a wave of liquidations, the collateral was basically 'cleared out.' Who would dare to 'buy the dip'? It must be the 'money-makers.'
And the most coincidental thing is that yesterday afternoon they added LP staking, and now the post seems to have been deleted ✍️.
🌟What's next for the market?
Looking at their response, there were basically no bad debts, so it's like a re-clearing of the market. Those who bought the dip got rich, those who were liquidated lost money, and those who bought at high points are stuck.
We all have a bright future 😧.
