What Is Magic Internet Money (MIM) How It Works & Where To Buy It?

Magic Internet Money (MIM) is a soft-pegged stablecoin that is designed to remain pegged to $1. MIM tokens are backed by interest-bearing tokens (ibTKNs).

Abracadabra.money is responsible for the minting of Magic Internet Money tokens. Abracadabra is a decentralized lending platform that allows individuals to take out crypto loans.

MIM token is currently one of the largest stablecoins in the world by market capitalization.

How Magic Internet Money (MIM) Works

To fully understand how Magic Internet Money works, you’ll need to understand what interest-bearing assets are, and how they can be used in Abracadabra to help you get your hands on MIM tokens.

Interest-bearing are assets that earn you rewards once they’re locked up for a certain duration. Typically, once your tokens are locked up you can’t use them, that’s where Abracadabra comes to the rescue.

Your interest-bearing assets can now be used as collateral, and you’ll receive a proportional value of MIM tokens in return.

The ratios are dependent on the type of interest-bearing tokens being used as collateral, individuals will also be responsible for paying off the interest accrued on their collateral.

Essentially, you’ll receive MIM stablecoins proportionate to the amount of collateral you provide in interest-bearing assets.

What Is Magic Internet Money (MIM) Used For?

Magic Internet Money (MIM) is used similarly to other stablecoins like USDT or USDC. The most notable use of MIM is for trading because of its price stability.

MIM can also be bridged across multiple ecosystems which gives the stablecoin added utility. The Magic Internet Money price is designed to stay soft-pegged to the price of USD which means that 1 MIM would equal $1.

The mechanism used to achieve this peg is however a novel mechanism that has caused a considerable amount of controversy among members of the crypto community.

Interest-bearing crypto assets are used as collateral to facilitate the minting of MIM tokens; once the user has paid off the loan, with interest, of course, their collateral is returned.

What happens next is also important as fees accrued from the loan are then used to purchase SPELL tokens. The SPELL token is used to reward SPELL token holders (75% of fees generated are used to buy SPELL tokens).

20% of the fees are allocated to the governance treasury and the remaining 5% is allocated to a multi-sig treasury – you can think of this as an emergency fund for when market intervention is required.

Where To Buy Magic Internet Money (MIM)

Unlike most stablecoins, MIM isn’t as freely available on exchanges – MIM tokens are predominantly available on decentralized exchanges. It should also be noted that many individuals don’t consider MIM to be as credible as stablecoins like USDT or USDC.

Users can purchase Magic Internet Money (MIM) tokens on the following exchanges:

1. Bitfinex (Centralized Exchange)
2. Gemini (Centralized Exchange)
3. Curve Finance (Decentralized Exchange)
4. SpookySwap (Decentralized Exchange)
5. TraderJoe (Decentralized Exchange)

Users need to have AVAX-compatible wallets to purchase MIM tokens on decentralized exchanges.

About Magic Internet Money (MIM)

How long has Magic Internet Money (MIM) existed?

Magic Internet Money (MIM) was first listed in September 2021. MIM tokens were created by Abracadabra, which was initially launched in May 2021.

Abracadabra.money was created by Daniele Sestagalli who has been around in the blockchain space since 2018. He’s also the founder of Olympus DAO fork, Wonderland.

What’s controversial about Magic Internet Money (MIM)?

Blockchain and crypto are very innovative spaces, and new projects are continuously emerging. Education and research are critical in the crypto space, and you should learn as much as possible before investing in any project. The legal framework surrounding crypto is very opaque, and many projects use this to their advantage – which is why diligent research is key.

Retail investors often fall victim to scams and ”rug pull” projects where they end up losing significant amounts of money. Do your research, make sure projects are credible, and compare information from multiple sources.

So, let’s take a look at the top two controversies surrounding Magic Internet Money (MIM):

• Novel soft-peg mechanism – MIM achieves its peg to the USD by using interest-bearing tokens. There are only certain tokens that are accepted as collateral. Users’ collateralized debt position is therefore individual to them, as opposed to an aggregated collateralized debt position.

  The problem however lies with using specific tokens to maintain a peg. Most stablecoins are backed by an equivalent amount of fiat assets or other relevant assets – MIM is backed solely by a select group of digital assets. This poses a significant risk to the volatility of the stable coin, which is supposed to remain stable.

  Daniele Sesta – The founder of Abracadabra.money is a very controversial figure in the crypto space. Daniele Sestagalli (fullname) is also the founder of Wonderland.money a project that has recently been surrounded by controversy.

  Many individuals in the crypto space are wary of any projects founded by or involving Sestagalli. Wonderland was an especially controversial project that promised a sustainable, yield-bearing mechanism but the project’s native TIME token plummeted from more than $10,000 to a current price of only $95.

How many Magic Internet Money (MIM) tokens are there?

At the time of writing, Magic Internet Money (MIM) has a circulating supply of1.93B MIM.

The total supply of Magic Internet Money (MIM) is 1,933,352,207.

Can Magic Internet Money (MIM) be mined?

Magic Internet Money is not a mineable cryptocurrency. Unlike Bitcoin and Ethereum which use proof-of-work consensus algorithms and require intensive rigs to mine, MIM tokens can only be minted once sufficient collateral is provided by the lender.

Stablecoins require backing to maintain their transparency and integrity in the market. Therefore, it would be unethical if stablecoins could be mined.

Companies that create stablecoins like USDT are audited and need to prove that they have an equal amount of assets to back every coin that they mint.

What is the market cap of Magic Internet Money (MIM)?

The following calculation is a simple way to work out the market cap of any cryptocurrency: total amount of coins in circulation times the current market price.

Therefore, MIM Market Cap = 1,93 billion x $1 = $1,93 billion.

The market cap fluctuates according to circulating supply and market price.

Biggest Competitors Of Magic Internet Money And MIM Token

The stablecoin market is currently dominated by USDT Tether and USDC – the largest stablecoins in the world by market cap. There has always been a substantial amount of controversy surrounding stablecoins and their credibility.

MIM will continue to face the same issues that other stablecoins have already and continue to endure. The credibility of any stablecoin is based on how transparent the project is, regular audits, and compliance with any legal framework.

Within the stablecoin space, the main competitors of Magic Internet Money (MIM) are:

• Tether (USDT)
• USDC
• UST
• DAI

The role of stablecoins continues to expand in the crypto market. Stablecoins like USDT currently account for billions of dollars – USDT is the 3rd largest cryptocurrency in the world by market cap.

MIM has a unique soft-pegging mechanism that will need to still withstand various challenges in the crypto space. Only once it can maintain its peg during critical market conditions, will it garner credibility.

What Are The Future Plans Of Magic Internet Money (MIM)

The future of Magic Internet Money (MIM) is reliant on the legal framework that will shape the crypto space. Stablecoins have always been an important talking point and their credibility has always been speculated.

Recently, there have been several lawsuits against companies that have created stablecoins – most of the lawsuits are citing irregularities in the assets that are used to back the digital tokens.

To mint MIM requires collateral to be provided by the lender, this process is a novel mechanism that has worked relatively well thus far. Abracadabra plans on expanding the utility of the token, as well as developing cross-chain interoperability for the token.

The eventual goal is for MIM to become one of the most-used stablecoins on the crypto market. There are an infinite amount of possibilities for the MIM stablecoin, so long as certain laws don’t block the token’s potential.

Pros And Cons Of Magic Internet Money (MIM)

Pros:

• Novel soft-pegging mechanism – Using interest-bearing assets as the collateral needed to mint MIM is an innovative mechanism.
• Frequently traded on DEXes – MIM has already amassed a market cap of $1,93 billion. MIM tokens are frequently traded on multiple DEXes including TraderJoe, SushiSwap, and Curve Finance.
• Real Use Case – There is a need for stablecoins in the crypto space. Stablecoins like MIM are perfectly designed for trading because of their price stability.

Cons:

• Competition – Several stablecoins are already dominating the stablecoin sector. MIM has a market cap of $1,93 billion whereas USDT has a market cap of $83 billion.
• The founder is a controversial figure – Daniele Sestagalli doesn’t have the best reputation in the crypto community. He is also the founder of the Wonderland.money project – a scandalous DeFi project where thousands of people lost large amounts of money.