Abracadabra is proposing to wind down its overcollateralized stablecoin MIM (Magic Internet Money) by settling obligations at roughly four cents per token, representing a 96% loss for holders. The token has lost over 95% of its peg value, trading at approximately $0.0446 as of September 2026 with a reported market cap of around $4.63 million. In June 2026, the protocol attempted to stabilize the coin by raising interest rates, cutting incentives, and injecting roughly $100,000 into a Curve pool, but these measures proved insufficient. An exploit in January 2024 and the inherent structural fragility of decentralized stablecoins accelerated the loss of confidence. MIM’s collapse illustrates the risks when the mechanisms designed to maintain a peg work in reverse once holder confidence wavers.
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