THELOGICALINDIAN - Daniele Sestagallis Frog Nation is in agitation as Wonderlands TIME badge has sunk beneath its built-in value
Wonderland’s TIME has plummeted about 40% in 24 hours. It’s currently trading at about $500 per coin, bottomward 95% from an best aerial aloft $10,000.
Wonderland’s TIME Trades Below Backing
Cascading liquidations accept pulled TIME beneath its declared built-in value.
Daniele Sestagalli’s Wonderland Money activity is adversity adamantine today as the amount of its built-in badge TIME has briefly hit almanac lows.
On-chain abstracts suggests that the acumen for the abrupt amount bead is a avalanche of liquidations triggered by the broader abatement of cryptocurrency prices. Due to the disproportionately aerial advantage abounding TIME holders booty on, the broader bead in crypto valuations has hit the Wonderland agreement harder than most.
While Bitcoin and Ethereum are currently trading 45% and 48% bottomward from their corresponding highs, TIME is bottomward almost 95%, appearance a cogent bead in amount from $10,000 to about $500 at the time of writing.
In decentralized finance, liquidations about action back traders cannot accord their loans on time, and the protocols automatically cash or advertise their collateralized assets. In Wonderland’s case, TIME holders about pale their tokens for rebasing and yield-bearing MEMO tokens. They can again use the tokens they acquire as accessory to borrow the MIM stablecoin.
To added access yields, MEMO holders can use their adopted MIM tokens to buy added MEMO, use that as accessory to borrow added MIM, and echo the action assorted times, accretion the advantage with every consecutive loop. However, back advantage is so high, baby bottomward moves in MEMO’s amount can activate liquidations. Wonderland about responds to this by affairs MEMO to awning the loans, added accretion the affairs burden on the badge and triggering bottomward liquidations.
Wonderland’s TIME tokens are issued adjoin and backed by a bassinet of assets, which apparently accord the tokens some built-in value. This agency that if the amount of TIME or MEMO alone beneath the abetment price, the agreement would use the treasury assets to buy aback the tokens and accompany them aback to their “fair value.” Following the defalcation cascade, the bearding Wonderland developer Sifu apprenticed to use the treasury’s funds to rebuy MEMO in Wonderland’s Discord server.
Nonetheless, MEMO tokens are currently trading beneath their abetment price, communicable abounding Wonderland association associates by surprise. MEMO is currently trading at about $28,000, while its abetment amount according to Wonderland’s dashboard is about $41,400.
Many MEMO holders acclimated the token’s abetment amount as a advertence point back adjusting their defalcation amount on the acceptance that the agreement would footfall in and assure the token’s amount from falling accomplished that point. However, admitting the $5 actor buyback conducted by the project’s developers this morning, MEMO connected trading at a cogent abatement to its built-in value, added fueling the defalcation cascade.
According to on-chain abstracts aggregate by DeFi auger activity beneath FreddieRaynolds on Twitter, Wonderland’s architect Daniele Sestagalli and arch developer Sifu were additionally victims of liquidations. Namely, Sestagalli and Sifu allegedly suffered $15 and $1.6 actor in defalcation losses respectively.
In addition, Sestagalli’s accommodation to about-face his Twitter annual to private after hitting 300,000 followers on Monday alone added ammunition to the fire. Following this morning’s crash, Sestagalli switched his annual aback to public and addressed the situation, acquainted that he’s “working on reestablishing aggregate to normal.”
Wonderland’s MEMO badge is still trading at a cogent abatement to its backing.
Disclosure: At the time of writing, the columnist of this affection captivated ETH, ICE, and several added cryptocurrencies.
