The cryptocurrency market could not escape the selling pressure and plunged into the red zone again. Bitcoin, the leading crypto, fell below $65,000, while altcoin projects generally followed suit. Meanwhile, some tokens suffered deep losses. The price of one of them, the Kujira token, fell nearly 50 percent today due to the Kujira Foundation’s operational wallet liquidations.
Kujira team’s positions were liquidated, altcoin price crashed!
As you have been following on Kriptokoin.com, token prices in the market can fly or crash in a short time! The native token of the Cosmos-based Kujira (KUJI) Blockchain lost nearly 50 percent of its price today as a result of the Kujira Foundation’s operational wallet liquidations. KUJI took a deep dive from its intraday high of $0.96 to $0.49. At the time of writing, the token was trading at $0.50, down 48% on a daily basis. During this period, the token’s trading volume saw a phenomenal increase of nearly 530%. This is likely the result of a flight of investors and traders.
The foundation had taken leveraged liquidity provision positions worth millions of dollars on its own DeFi platform that it failed to properly manage. In a statement, the team claimed that by using operational funds in leveraged positions, it aimed to increase liquidity and stimulate activity on the DEX.
How did the liquidation of the Kujira team take place?
The liquidations occurred due to the team’s inability to secure loans using its Kujira (KUJI) token reserves under volatile conditions. This resulted in automatic liquidations, triggering a gradual sell-off and driving down the prices of collateralized assets. Data from Pulsar Finance shows that the team’s wallet still has a debt position of $2 million. In a Telegram post, the team made the following statement:
As a team, we thought the best use of some of the operation funds would be leverage and distribution across the ecosystem to increase liquidity and activity. However, some individuals targeted positions. Unfortunately, this coincided with various attacks. People targeted the team’s positions and it’s been a constant struggle since these positions were created.
The altcoin team took responsibility and apologized!
The Kujira team added that it takes responsibility for its positions and apologizes for the impact on the price. In this context, the altcoin team said, “While temporary, we realize that this hurts and we are sorry.”
Kujira is a Blockchain built on the Cosmos network, which operates as a decentralized financial center. Some of Kujira’s key features include a decentralized exchange, lending platform and decentralized stablecoin called USK. The network also operates a system to liquidate positions that are not collateralized by the users themselves. Meanwhile, the total locked value of the blockchain is over $42 million.
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