Cosmos-Based Altcoin Team Was Liquidated, Token Price Crashed by 40 Percent!

Kujira token price dropped 40% today due to Kujira Foundation's operating wallet liquidations.

KUJI, the native token of the Cosmos-based Kujira blockchain, experienced a 44.69% decline today, dropping its price from $0.97 to $0.57. The reason for this decline was the liquidation of liquidity-providing positions in Kujira Foundation's operating wallet.

Kujira Foundation had taken millions of dollars in leveraged liquidity positions and was unable to properly manage these positions on its DeFi platform.

The team stated that they aim to increase liquidity and stimulate activity on the DEX by using operating funds in leveraged positions.

However, the loans the team took out using its own Kujira (KUJI) token reserves became under-collateralized due to volatile market conditions, triggering automatic liquidations.

These liquidations caused a rapid decline in the price of the collateralized asset. According to Pulsar Finance data, the team still has a $2 million debt position in its wallet.

“We thought it would be best to use some of the operating funds in leveraged positions to increase liquidity and stimulate activity in the ecosystem,” the team said in a statement on Telegram. He also stated that some people target these positions and are in a constant struggle.

“Unfortunately, this coincided with various attacks. “People targeted positions on the team and we have been in a constant struggle ever since these positions were created,” they added:

The team acknowledged that they were responsible for their positions and apologized for the impact on price:

Even though it is temporary, we are aware that this situation hurts and we are sorry.