Kujira Foundation's operating wallet has been liquidated, and the token has dropped 40%.
On August 1st, due to the liquidation of the Kujira Foundation's operational wallet, the price of the Kujira token fell by 40% today, from $0.97 to $BTC
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 use of leveraged positions with operational funds was aimed at improving liquidity and stimulating activity on its DEX. The liquidation occurred because the team's loans, collateralized by their own Kujira (KUJI) token reserves, were undercollateralized in the volatile environment.
This triggered an automatic liquidation, sparking a chain reaction of sell-offs and leading to a drop in the price of the collateral assets. Data from Pulsar Finance shows the team's wallet still has $2 million in debt.
