Magic Internet Money (MIM)

What happens when the stablecoin meta blows off the roof?

Let me give you some context.

I witnessed the first bull market for myself in 2021 and at that time, everything went parabolic and a 2× return barely felt unusual.

Fast fowrd to two years and the market has doubled in tokens and we we can hardly even see a 50% surge.

I think stablecoins are entering a similar phase of rapid expansion.

Although they will rarely experience the same price volatility as ordinary tokens because they are designed to maintain a fixed value.

but two big risks stands oj thee way: a depeg or windown

This is because unlike many crypto tokens, which may or may not be essential to the businesses behind them, the stablecoin is usually the business itself.

Thus it must be useful, widely integrated into payment systems, adopted for remittances, used as collateral, held in liquidity pools or embedded within other financial products. These activities generate demand and, in many cases, revenue for the issuer.

In a stablecoin renaissance, dozens of issuers begin competing for the same holders, liquidity, integrations and trading pairs.

To attract capital, some will promise unusually high yields. Others will take greater risks with reserves, lending strategies or counterparties to maintain those returns.

That is when the problems begin.

We have already seen stablecoins such as MIM and UST demonstrate how quickly confidence can collapse when the assets, incentives or systems supporting a stablecoin become fragile.

When a normal token fails, investors may lose money because its price falls. When a stablecoin fails, holders lose money they believed was equivalent to cash and compensation is never guaranteed.

And this is why I think everyone should read the article below

In combination with MIM peg, this doesn’t sound encouraging. I think most of the details for those interested are written in this vote

https://t.co/FeGRXA9Ydf

$MIM (CA 4p37V4YA54Jou7k3TWnwxeDXqtB9BQRik6NL3noJpump) can't be analyzed with devsnightmare, but it says team holds 4.3% of the supply. Mario³³°, PoorGoat_, a ton of Ansem top holders, Ansem, Mitch, Cooker are top holders.

Supply sent cluster holds 39.9% of the supply, once main wallet hidden there is a 15.9% time node cluster. CEX cluster has 63.8%. When wallets are counted once, Bybit funded wallets ahve 7% (high), Coinbase 5.1%, Kucoin 5.1%, Bionance 4.8%, Changehero 4.6% (high), Gate 4%, Mexc 3.3%, HitBTC 2.3%.

Top 70 holders have 44.4%, top 10 have 14.8%, 5.3k holders with an average bag at $35. Nfa