Due to the liquidation of the Kujira Foundation's operating wallet, the KUJI token has dropped 40%.
According to a report by The Block, the price of the Kujira token fell by 40% today, from $0.97 to $0.57, due to the liquidation of the Kujira Foundation's operating wallet. The foundation had taken on leveraged liquidity provider positions worth millions of dollars, but failed to properly manage them on its own DeFi platform. The team claimed in a statement that the liquidation occurred because the team's loans, obtained using their own Kujira (KUJI) token reserves, were undercollateralized in the volatile environment, triggering an automatic liquidation and a cascading sell-off that led to a drop in the collateral asset prices. Data from Pulsar Finance shows that the team's wallet still has $2 million in debt.
