Terra’s Token Luna Drops 25% As MIM Stablecoin Panic Grows
TIME, MIM and LUNA Tokens and Coins Suffer Wonderland Drama
The previously market-leading token, Luna, has lost more than 25% of its value after news of the defunding of the MIM stablecoin sparked additional panic around the asset.
According to TradingView, LUNA has lost 27% of its value in the past six days, in addition to 32% from its all-time high at the end of December. During the global downward trend in the cryptocurrency market in the last month of 2021, Luna significantly outperformed the majority of the market with a 133% increase in the ATH.
MIM Financing Problems
Funding for the stablecoin was cut by more than 40% from $530 million to about $300 million on CurveFinance. The reason behind the liquidity is more likely connected with news of Wonderland developers involved in the QuadrigaCX exit scam.
Numerous Wonderland projects are linked to the Abracadabra protocol, which acts as a foundation of the Magic Internet Money stablecoin. The panic around that currency and LUNA is fueled by the fact that all assets are interconnected.
As funding data suggests, funding for UST and MIM stablecoins fell by about 30% almost immediately after the first news of outrageous developer deanonymization appeared in the space.
Wonderland drives out Sifu
According to the most recent data in the chain, the Wonderland DAO community has launched a vote to remove the former Quadriga developers from the project.
According to CoinMarketCap data, the price of the Time token has fallen rapidly from around $1,000 to $385 in a week. Users have linked the increasing selling pressure to the developer of the project constantly moving $200,000 worth of TIME tokens from the market.