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Terra's Token Luna Plunges by 25% as Panic Around MIM Stablecoin Aggravates

Sun, 01/30/2022 - 14:18
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Arman Shirinyan
TIME, MIM and LUNA tokens and coins suffer from Wonderland drama
Terra's Token Luna Plunges by 25% as Panic Around MIM Stablecoin Aggravates
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The previously market-leading token, Luna, has lost more than 25% of its value following news about the defunding of the MIM stablecoin that caused additional panic around the asset.

According to TradingView, LUNA lost 27% of its value in the last six days in addition to 32% lost from the all-time high reached back at the end of December. During the global downtrend on the cryptocurrency market back in the last month of 2021, Luna was performing significantly better than the majority of the market with a 133% run to the ATH.

MIM funding issues

The funding of the stablecoin was drained by more than 40% from $530 million to approximately $300 million on CurveFinance. The reason behind the liquidity is more likely tied to news about Wonderland developers being involved in the QuadrigaCX exit scam.

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Numerous Wonderland projects are tied to Abracadabra protocol, which acts as a foundation of the Magic Internet Money stablecoin. The panic around that coin and LUNA is being fueled by the fact that all of the assets are tied up with each other.

As funding data suggest, after the first news about scandalous developer deanonymization appeared in the space, funding of UST and MIM stablecoins almost immediately dropped by approximately 30%.

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According to the most recent data on-chain, the community of Wonderland DAO has initiated a vote for the removal of the former Quadriga developers from the project.

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According to CoinMarketCap data, the price of the Time token has swiftly dropped from approximately $1,000 to $385 in a week. Users have tied the increasing selling pressure with the project's developer constantly moving $200,000 worth of TIME tokens from the market.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.