LUNA Dumps Due To Wonderland Controversy

January 29, 2022 12:52 pm

Luna is the native token of the Terra blockchain and is currently the 9th largest coin by total market cap as of January 2022.

Unfortunately, the price of the coin dropped sharply after the revelation that Luna was associated with the Wonderland controversy.

Starting from Friday morning, it was recorded that the price had dropped over 17% and is about half the price that it was back from it’s all time high during last year’s crypto bull run.

Regarding the details of the controversy and how Luna is related to it, it was revealed that a Twitter user who had inside knowledge exposed that Michael Patryn was a core member of the Wonderland project.

Michael Patryn is known as the founder of the former Canadian exchange QuadrigaCX .

This exchange was involved in much controversy as the founder, Gerard Cotten, had mysteriously apparently “died” in India and the exchange had lost it’s customer funds shortly after.

The end result was that this scam had lost its investors a total of around $113 million.

How is Luna related to all of this?

FxEmpire explains:

This week, news hit the wires of Canadian exchange QuadrigaCX co-founder Michael Patryn being a member of a decentralized project called Wonderland.

QuadrigaCX collapsed after a scam causing a loss of circa $133m for investors.

Significantly, Patryn has also spent 18-months in U.S prison and was deported to Canada after pleading guilty to offences that included credit and bank card fraud and computer fraud amongst other crimes.

As a result of the news, Wonderland token TIME collapsed to and currently sits at $400 levels. TIME had struck an ATH $9,948 back in early November 2021.

The linkage and collapse of TIME has had a knock-on effect on LUNA, with the Wonderland project tied to platform Abracadabra.

Wonderland project co-founder Daniele Sestagalli is also founder of Abracadabra.

Terra stable coin UST can be staked to lend Magic Internet Money (MIM), which is a soft-pegged US Dollar stable coin that is minted by lending platform Abracadabra.

Terra is unique in the sense that it is focused on using fiat-fixed stable coins and aims to connect the advantages of borderless crypto assets with the type of stability that is typically offered by government fiat money.

It is able to have a balancing stake mechanism by being able to dynamically change its stable coin supply depending the interest.

Terra’s Luna coin has risen to the top 10 crypto list very recently in the past year with a market cap of $20.86bn at the time of writing and has so far showcased its potential to compete with the top blockchain platforms like Ethereum and Ripple.

In 2021, LUNA surged by almost 13,000% to move into the top 10 according to CoinMarketCap. Rallying from a 2021 opening $0.65, LUNA reached its ATH at $103.36 before ending the year in December at $85.48.

Since the release of the Wonderland news controversy and the broader crypto market entering a slump due to regulation pressures and interest rate worries, the coin currently trades at $51.

With that being said, LUNA holders are still optimistic about the long term strategy of the blockchain due to its potential use cases and future potential expansion.

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