The cryptocurrency market could not escape the selling pressure and plunged into the red zone again. While the leading crypto Bitcoin fell below $ 65,000, altcoin projects generally followed. Meanwhile, some tokens suffered deep losses. The price of one of them, the Kujira token, fell by about 50 percent today due to the operational wallet liquidations of the Kujira Foundation.
Kujira team’s positions were liquidated, altcoin price crashed!
Cryptocoin.comAs you can follow from , token prices can skyrocket in the market in a short time! The native token of the Cosmos-based Kujira (KUJI) Blockchain lost about 50 percent of its price today as a result of the Kujira Foundation’s operational wallet liquidations. KUJI took a deep dive from the $ 0.96 level it was trading at $ 0.49 during the day. The token was trading at $ 0.50 at the time of writing, down 48 percent on a daily basis. During this period, the token’s trading volume increased by an extraordinary 530 percent. This is likely a result of investors and traders fleeing.
The foundation had taken leveraged liquidity positions worth millions of dollars on its own DeFi platform that it failed to properly manage. The team claimed in a statement that it aimed to increase liquidity and encourage activity on the DEX by using operational funds in leveraged positions.
How did the purge of the Kujira team happen?
The liquidations occurred because the team’s loans taken using its own Kujira (KUJI) token reserves could not be secured under volatile conditions. This resulted in automatic liquidations, triggering a cascading sell-off and driving down the prices of the collateralized assets. Data from Pulsar Finance shows that the team’s wallet still has a $2 million debt position. The team explained in a Telegram post:
As a team, we felt that the best use of some of the operations funds would be to leverage and distribute them across the ecosystem to increase liquidity and activity. However, some people targeted positions. Unfortunately, this coincided with several attacks. People targeted the team’s positions and it’s been a constant battle since these positions were created.
The Altcoin team took responsibility and apologized!
The Kujira team added that they took responsibility for their position and apologized for the impact it had on the price. In this regard, the altcoin team said, “While temporary, we realize this is painful and we are sorry.”
Kujira is a blockchain built on the Cosmos network that operates as a decentralized financial hub. Some of Kujira’s key features include a decentralized exchange, lending platform, and a decentralized stablecoin called USK. The network also operates a system to liquidate positions that are not collateralized by users themselves. Meanwhile, the total locked value of the blockchain is over $42 million.
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