{"id":1440,"date":"2022-01-27T06:13:54","date_gmt":"2022-01-27T06:13:54","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=1440"},"modified":"2022-01-27T06:13:55","modified_gmt":"2022-01-27T06:13:55","slug":"frogs-in-meltdown-as-wonderland-turns-to-black-forest","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=1440","title":{"rendered":"Frogs in Meltdown as Wonderland Turns to Black Forest"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<h3>Key Takeaways<\/h3>\n<p>Daniele Sestagalli&#8217;s Wonderland.Money project has suffered a major liquidation cascade.<br \/>\nTIME is currently trading 95% below its all-time highs, down from $10,000 to $500.<br \/>\nOn the other hand, MEMO is currently trading at $27,300, significantly below its backing price of $41,125.<\/p>\n<p>Share this article<\/p>\n<p>Wonderland\u2019s TIME has plummeted around 40% in 24 hours. It\u2019s currently trading at around $500 per coin, down 95% from an all-time high above $10,000.<\/p>\n<h2><strong>Wonderland\u2019s TIME Trades Below Backing<\/strong><\/h2>\n<p>Cascading liquidations have pulled TIME below its supposed intrinsic value.<\/p>\n<p>Daniele Sestagalli\u2019s Wonderland Money project is suffering hard today as the price of its native token TIME has briefly hit record lows.\u00a0<\/p>\n<p>On-chain data suggests that the reason for the sudden price drop is a cascade of liquidations triggered by the broader decline of cryptocurrency prices. Due to the disproportionately high leverage many TIME holders take on, the broader drop in crypto valuations has hit the Wonderland protocol harder than most.\u00a0<\/p>\n<p>While Bitcoin and Ethereum are currently trading 45% and 48% down from their respective highs, TIME is down roughly 95%, marking a significant drop in price from $10,000 to around $500 at the time of writing.<\/p>\n<p><em>TIME\/USD (Source: CoinGecko)<\/em><\/p>\n<p>In decentralized finance, liquidations typically occur when traders cannot repay their loans on time, and the protocols automatically liquidate or sell their collateralized assets. In Wonderland\u2019s case, TIME holders typically stake their tokens for rebasing and yield-bearing MEMO tokens. They can then use the tokens they earn as collateral to borrow the MIM stablecoin.\u00a0<\/p>\n<p>To further increase yields, MEMO holders can use their borrowed MIM tokens to buy more MEMO, use that as collateral to borrow more MIM, and repeat the process multiple times, increasing the leverage with every subsequent loop. However, when leverage is so high, small downward moves in MEMO\u2019s price can trigger liquidations. Wonderland typically responds to this by selling MEMO to cover the loans, further increasing the selling pressure on the token and triggering cascading liquidations.<\/p>\n<p>Wonderland\u2019s TIME tokens are issued against and backed by a basket of assets, which theoretically give the tokens some intrinsic value. This means that if the price of TIME or MEMO dropped below the backing price, the protocol would use the treasury assets to buy back the tokens and bring them back to their \u201cfair value.\u201d Following the liquidation cascade, the pseudonymous Wonderland developer Sifu pledged to use the treasury\u2019s funds to rebuy MEMO in Wonderland\u2019s Discord server.\u00a0<\/p>\n<p><em>Wonderland lead developer Sifu promises to buy back MEMO tokens (Source: Wonderland Discord)<\/em><\/p>\n<p>Nonetheless, MEMO tokens are currently trading below their backing price, catching many Wonderland community members by surprise. MEMO is currently trading at around $28,000, while its backing price according to Wonderland\u2019s dashboard is around $41,400.<\/p>\n<p>Many MEMO holders used the token\u2019s backing price as a reference point when adjusting their liquidation price on the assumption that the protocol would step in and protect the token\u2019s price from falling past that point. However, despite the $5 million buyback conducted by the project\u2019s developers this morning, MEMO continued trading at a significant discount to its intrinsic value, further fueling the liquidation cascade.<\/p>\n<p lang=\"en\" dir=\"ltr\">Quick correction. The initial link posted directs to Sifu&#8217;s wallet (Wonderland cofounder) which has been liquidated for $1.6M so far today. This link is the link to Dani&#8217;s wallet which has been liquidated for $15M so far.https:\/\/t.co\/7SnKGevKlr<\/p>\n<p>\u2014 FreddieRaynolds (@FreddieRaynolds) January 25, 2022<\/p>\n<p>According to on-chain data shared by DeFi pundit going under FreddieRaynolds on Twitter, Wonderland\u2019s founder Daniele Sestagalli and chief developer Sifu were also victims of liquidations. Namely, Sestagalli and Sifu allegedly suffered $15 and $1.6 million in liquidation losses respectively.<\/p>\n<p>In addition, Sestagalli\u2019s decision to switch his Twitter account to\u00a0private\u00a0after hitting 300,000 followers on Monday only added fuel to the fire. Following this morning\u2019s crash, Sestagalli switched his account back to\u00a0public and addressed the situation, noting that he\u2019s \u201cworking on reestablishing everything to normal.\u201d<\/p>\n<p>Wonderland\u2019s MEMO token is still trading at a significant discount to its backing.<\/p>\n<p><em>Disclosure: At the time of writing, the author of this feature held ETH, ICE, and several other cryptocurrencies.<\/em><\/p>\n<p>Share this article<\/p>\n<p>The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.<\/p>\n<p>You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.<\/p>\n<p>See full terms and conditions.<\/p>\n<h3 class=\"title\">Terra, Abracadabra Stablecoins \u201cAre Going to Zero\u201d: Maker &#8230;<\/h3>\n<p>\nMakerDAO founder Rune Christensen described the UST and MIM stablecoins as \u201csolid ponzis\u201d in a tweet earlier this morning. Abracadabra.Money and Terra founders Daniele Sestagalli and Do Kwon immediately fired&#8230; <\/p>\n<h3 class=\"title\">DeFi Project Spotlight: Abracadabra.Money, DeFi\u2019s Magic Money Sp&#8230;<\/h3>\n<p>\nAbracadabra.Money is a lending protocol that allows users to deposit interest-bearing assets as collateral to borrow a stablecoin called Magic Internet Money that can be used across multiple blockchains. Abracadabra.Money&#8230; <\/p>\n<h3 class=\"title\">Audience Survey Win A $360 Subscription To Pro BTC Trader<\/h3>\n<p>\nAnswer the questions below and share your email for a chance to win. Every month, 5 people will receive a $360 1-year subscription to Pro BTC Trader. Free. We\u2019re doing&#8230; <\/p>\n<h3 class=\"title\">What Are Andre Cronje and Daniele Sestagalli Building on Fantom?<\/h3>\n<p>\nAndre Cronje and Daniele Sestagalli, two of the most venerated figures in decentralized finance, have hinted at a new product and token dropping on the Fantom blockchain this month.\u00a0 Andre&#8230; <\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptobriefing.com\/frogs-meltdown-wonderland-turns-black-forest\/?utm_source=main_feed&#038;utm_medium=rss\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Daniele Sestagalli&#8217;s Wonderland.Money project has suffered a major liquidation cascade. TIME is currently trading 95% below its all-time highs, down from $10,000 to $500. On the other hand, MEMO is currently trading at $27,300, significantly below its backing price of $41,125. Share this article Wonderland\u2019s TIME has plummeted around 40% in 24 hours. 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