Timeline of the Decline
November 2021
$1.01
All-Time High - Peak euphoria
January 2022
$0.98
0xSifu scandal creates uncertainty
May 2022
$0.94
UST collapse threatens collateral
Current
$0.97
Post-collapse trading
What Went Wrong
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Volatile Collateral Backing
MIM accepted volatile assets as collateral including UST, ibTKN tokens, and yield-bearing tokens with smart contract risk.
-
UST Exposure
Significant MIM was backed by UST. The Terra collapse forced rapid deleveraging and threatened the peg.
-
Reputation Damage
The 0xSifu scandal and Wonderland connection damaged trust in all Daniele Sestagalli projects.