TL;DR
- The price of Kujira token (KUJI) has dropped by 42.68% in 24 hours, standing at $0.5451.
- The Kujira Foundation is facing a liquidation crisis with $5 million outstanding debt.
- The team insists that the situation is not comparable to the collapse of Terra, despite speculation.
Kujira, a project based on the Cosmos blockchain, is going through a significant crisis that has led to a 42.68% drop in the price of its KUJI token, which now stands at $0.5451.
This collapse has been caused by a series of massive liquidations that have deeply impacted the stability of the project.
The Kujira Foundation currently has several leveraged positions in its Ops wallet, including cryptocurrency pairs such as KUJI/USDC, KUJI/ATOM, KUJI/USK, and USDC/USK.
These positions are being liquidated due to falling prices, which has reduced the wallet balance from $12.4 million to $8.7 million in a short period.
Additionally, it is estimated that more than $3 million in KUJI has already been liquidated, while the outstanding debt amounts to $5 million.
Kujira (KUJI) token has seen a 42.25% drop over the past 24 hours, trading at $0.5485 according to CoinMarketCap.
This drastic decline in value is the result of a series of mass liquidation events that have severely affected the stability of the project.
The drop in price reflects the current difficulties facing the Kujira Foundation, with a liquidation crisis in its leveraged positions having intensified market volatility.
The team has communicated that its positions are under attack and has attempted to manage the impact of these liquidations.
In a recent message, they explained that the decision to leverage and deploy funds to stimulate liquidity and activity in the ecosystem coincided with targeted attacks on their positions.
Although these attacks have exacerbated the situation, the team says they are not seeking sympathy, but are trying to explain the events that have led to the current crisis.
Situation Management and Kujira Team Response
The Kujira team has addressed the situation by acknowledging responsibility for the impact on KUJI’s price and apologizing to the community.
They say they are working on different strategies to manage the debt and that a detailed plan will be communicated shortly.
Despite speculation that this crisis could be comparable to the collapse of Terra, the team emphasizes that the debt is contained and manageable.
According to them, although the situation is affecting the price of the token, this drop cannot continue indefinitely.
The team has also stated that they are re-evaluating their roles and strategies to ensure the community is best served.
They recognize that trust has been damaged and are committed to restoring it and focusing on what is best for everyone involved.
Although Kujira faces significant challenges, the team believes the technology and potential of the project remain strong.
The current situation is considered a critical point for the evaluation and continuous improvement of the project, always seeking the well-being and stability of the community.
