DeFi Users Fear All Stablecoins Falling
The scandal has undermined investors' faith in the stablecoin pair, MIM and UST, with users now rushing to sell their tokens, and the uproar may result in the unpegging of the coin from the dollar.
Investors are concerned that the loss of one stable coin could lead to a "contagion effect," dropping the value of several Stablecoins at once.
Popular network analyst zachXBT said on Twitter that the creator of Wonderland (TIME), DeFi's reserve currency, is actually Michael Patrin, co-founder of the infamous and fraudulent Canadian crypto exchange QuadrigaCX.
This so-called "discovery" caused Wonderland's price to drop by 40%.
The stable MIM coin from the creator of Abracadabra is one of the victims of the crisis of confidence. The ensuing low liquidity briefly pushed MIM away from pegging to the dollar on the curve during the day.
This, in turn, drove Terra's stable UST coin.
