Kujira native token KUJI is plummeting after the foundation was liquidated on its leveraged liquidity positions.
Kujira’s KUJI token is down 42% on the day, and the chain’s total value locked (TVL) is down 22% to $38 million in the past 48 hours according to DeFiLlama.
The foundation attributes the liquidations to poor timing, as their leveraged deployments coincided with “exploits, socially engineered attacks and fallouts within the ecosystem” and the rate of selling made defending their positions “impossible,” according to a statement it published on social media.
GM all. We’d like to address the current events.
As a team we thought the best use of a portion of ops funds would be to leverage and deploy across the ecosystem in order to bootstrap liquidity and activity. We genuinely felt like this was the correct course of action at the… pic.twitter.com/qBw9w6y94b
— Kujira 🉐 (@TeamKujira) August 1, 2024
Kujira is a decentralized finance (DeFi) and fintech-focused Layer 1 blockchain built on the Cosmos software-development kit (SDK).
The chain is semi-permissioned, meaning new dApps must be approved by governance prior to their launch. Kujira launched in July 2022, and reached an all-time high TVL on March 8, 2024.
Moving forward, the foundation proposes to create the Kujira Operational DAO, which will take ownership of the remaining treasury and core protocols. They also proposed that the community pool be migrated to the DAO.
The migration process will use Fuzion’s OTC Bonds product, which would offer the community vested KUJI at a discounted rate.
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Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.