Flash Crash Rattles MIM Stablecoin Following $6.5M Exploit

• Abracadabra.money's Stablecoin MIM Experiences Flash Crash Following $6.5 Million Exploit
• Root Cause and Abracadabra's Response
• Current Trading Position and Actions
• MIM's Historical Market Fluctuation
• Previous Scrutiny of the Project

Abracadabra.money's Stablecoin MIM Experiences Flash Crash Following $6.5 Million Exploit

The stablecoin issued by the decentralized platform Abracadabra.money, known as MIM, recently experienced a sudden dip to $0.76. This flash crash was triggered by the discovery of a $6.5 million exploit. PeckShield, a blockchain security company, revealed preliminary details of the exploit at 11:35 UTC on Tuesday, divulging that the attacker was funded through Tornado Cash, a recognized privacy protocol.

Root Cause and Abracadabra's Response

Cetrik suggested that preliminary indications identified a rounding error as the root cause of the exploit. In response to the crash, MIM developers announced that Abracadabra's Decentralized Autonomous Organization (DAO) intends to buy back the fallen stablecoin from the market in order to maintain its peg. This stablecoin is designed to consistently trade at $1.

Current Trading Position and Actions

As of the time of reporting, the stablecoin was trading at around $0.94, according to CoinMarketCap. MIM took to its platform to announce, We are aware of an exploit involving specific cauldrons on Ethereum$2,315 -2.42%. Our engineering team is analyzing and investigating the situation. As much as possible, the DAO treasury will be buying back MIM from the market and subsequently burn it. Additional updates will follow.

MIM's Historical Market Fluctuation

MIM's market performance was also rocked in 2022 during the meltdown of FTX$3.28 -5.38% when a third of MIM's collateral was tied up in FTT, the native token of FTX. As FTT's value plummeted, MIM's price fell to $0.95 before recovering back to parity.

Previous Scrutiny of the Project

The project was previously under review after a proposal was presented to shift power from the decentralized Abracadabra DAO to a centralized entity comprising lawyers and trustees.

Edited by Jonathan Stoker