Kujira Foundation faces a massive liquidation event, causing its token KUJI to drop by over 47%, with team’s leveraged positions attacked and liquidations impacting its market value.
Points
- Kujira Foundation faces massive liquidation, KUJI drops by over 47%
- Team’s leveraged positions attacked, leading to liquidations
- Comparison with Terra situation, team insists it’s not similar
- Ongoing challenges and market implications
Cosmos crypto project Kujira is facing a massive liquidation event that has seen its token KUJI tank by over 47% since early Thursday. The team claims their leveraged positions were attacked. Kujira Foundation is said to have four leveraged LP positions—KUJI/USDC, KUJI/ATOM, KUJI/USK, and USDC/USK—on its Ops wallet. These positions are now being liquidated as prices drop further. The liquidations have led to the wallet balance dropping to $8.7 million from over $12.4 million earlier today.
Kujira’s Current Situation
The liquidation event has raised significant concerns within the community. “As a team we thought the best use of a portion of ops funds would be to leverage and deploy across the ecosystem in order to bootstrap liquidity and activity,” the post said. “Sadly, this coincided with various attacks. People targeted the team positions, and it’s been a constant fight since these positions were created.”
KUJI’s price has dropped by 47.9% to $0.4818 from today’s opening price of $0.9251. At the current price, KUJI is down over 91% from its all-time high. A day earlier, Kujira’s stablecoin USK also briefly got de-pegged, dropping to $0.94.
Comparing with Terra
The situation has had some people in the crypto space say Kujira project is a “slow rug” and others have dubbed it the next Terra, especially since both projects are based on Cosmos blockchain. However, the Kujira team refuted the speculation, saying “This isn’t a Terra type situation.”
“It’s a contained amount of debt, that will be dealt with one way or another. It is hurting KUJI price which we realize, but can only ‘spiral’ so much,” Kujira said.
It’s worth mentioning that Kujira started off on the Terra Classic blockchain before moving to its layer-one network on Cosmos after Terra imploded.
Conclusion
Kujira’s ongoing challenges highlight the volatility and risks associated with leveraged positions in the crypto market. While the team insists that the situation is not akin to Terra, the impact on KUJI’s price and community sentiment is significant. Ongoing efforts to manage the debt and stabilize the market will be crucial for Kujira’s future.
解説
- Leveraged positions in the crypto market can lead to significant volatility and risk, as seen with Kujira’s recent liquidation event.
- Comparisons with the Terra situation underscore the need for careful risk management and transparency in crypto projects.
- Kujira’s team faces the challenge of stabilizing the market and restoring community confidence.
- Understanding the implications of leveraged positions and market dynamics can help investors navigate similar situations in the future.
- Monitoring project developments and responses to crises is crucial for assessing investment viability.