According to PANews, the price of Kujira (KUJI) tokens plummeted by 40% today, falling from $0.97 to $0.57, following the liquidation of the Kujira Foundation's operational wallet. The foundation had taken on leveraged liquidity positions worth millions of dollars but failed to manage them properly on its own DeFi platform. In a statement, the team claimed that the operational funds used in leveraged positions were intended to enhance liquidity and stimulate activity on their decentralized exchange (DEX).

The liquidation occurred because the loans obtained using the foundation's KUJI token reserves were under-collateralized in a volatile market environment. This led to automatic liquidations, triggering a chain reaction of sell-offs and causing the collateral asset prices to drop. Data from Pulsar Finance indicates that the foundation's wallet still holds $2 million in debt.

In a Telegram post, the team stated, 'As a team, we believed the best use of a portion of the operational funds was to leverage and deploy across the ecosystem to boost liquidity and activity.' They further claimed that certain individuals targeted their positions, intentionally causing a series of liquidations. The team added that they are willing to take responsibility for their stance and apologized for the impact on the token's price: 'While this is temporary, we understand it is painful, and we are sorry.'