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Key Takeaways
- Wonderland, Abracadabra, and Popsicle have been hit exhausting out there as we speak.
- The weak value motion follows the information that Wonderland’s treasury supervisor co-founded the QuadrigaCX trade earlier than it shut down with $169 million of shoppers’ funds.
- Sestagalli has revealed a brand new weblog submit as we speak suggesting a path ahead for the Wonderland venture.
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It’s been a troublesome few days for the Frog Nation.
Wonderland Plummets on 0xSifu Saga
The Frog Nation is licking its wounds.
Wonderland Cash, the Avalanche-based Olympus DAO fork created by Daniele Sestagalli, suffered a dramatic downturn Thursday when it was revealed that Sestagalli had enlisted a prison to supervise the venture’s treasury. Non-public messages shared by an on-chain analyst referred to as zachxbt revealed that Wonderland’s pseudonymous treasury supervisor 0xSifu was Michael Patryn, a convicted fraudster who co-founded QuadrigaCX trade earlier than it was shut down with $169 million in traders’ funds unaccounted for. Following the revelation, Sestagalli admitted that he had identified of 0xSifu’s id for a month.
Wonderland traded within the crimson because the information broke, briefly hitting an all-time low of $262. Following a short-lived restoration, it’s down once more as we speak, at the moment buying and selling at $330. It’s nearly 97% wanting its document excessive. Wonderland is a part of a category of so-called “DeFi 2.0” initiatives that goal to supply progressive methods to seize liquidity and provide yield for customers. It makes use of a rebasing mechanism just like the one popularized by Ampleforth and incentivizes customers to stake tokens to generate yield. Notably, traders may use the tokens they earn as collateral to borrow a stablecoin referred to as Magic Web Cash to additional improve their yields. As there’s excessive leverage inside the system when extra customers deposit collateral, slight downward strikes could cause violent liquidations. There was a liquidation cascade Monday that noticed Sestagalli himself lose an eight-figure sum. Wonderland and different related protocols have often been branded as “Ponzi” schemes by critics as they depend on new customers getting into to prop up the incentives and sometimes provide questionably excessive yields. One other related protocol to Wonderland referred to as Redacted Cartel is at the moment paying out 86,409% APY to customers who stake its BTRFLY token.
Daniele Sestagalli Initiatives Flip Pink
Apart from Wonderland, Sestagalli’s two different initiatives, Abracadabra Cash and Popsicle Finance, have additionally been hit exhausting over the previous few days. Abracadabra, which mints the Magic Web Cash stablecoin through a token burning mechanism, is all the way down to a market cap of $429.1 million after its SPELL token dropped 14.8%. Magic Web Cash can also be buying and selling under its peg at $0.98 after its Curve Finance pool obtained drained. Popsicle, in the meantime, is down 7.7% as we speak, persevering with a months-long descent from its November all-time excessive of $66. It’s about 94% wanting the height at present costs.
Wonderland, Abracadabra, and Popsicle are three most popular initiatives of the “Frog Nation,” a neighborhood of crypto lovers that gathered round Sestagalli quickly after he rose to prominence late final 12 months. Sestagalli led the Frog Nation on a marketing campaign dubbed OccupyDeFi in what he described as an try to deliver decentralization again to the DeFi house. Sestagalli took pictures at centralized stablecoins like USDC, in addition to protocols like Maker (the early Ethereum venture depends on giant quantities of USDC to collateralize its DAI stablecoin).
Whereas Sestagalli’s three initiatives have skilled main corrections, he seems set on making amends. Just a few hours in the past, he revealed a Mirror submit asking the neighborhood to proceed with a vote to determine Wonderland’s future. “I made a mistake, obtained blinded and I’m sorry for that, Wonderland itself has achieved some massive issues and the facet of an Funding DAO to me nonetheless is extremely fascinating,” he wrote with a suggestion to recruit professionals to handle the treasury. “It’s now as much as the neighborhood to determine.”
Disclosure: On the time of writing, the writer of this function owned ETH, BTRFLY, CRV, and a number of other different cryptocurrencies.
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Wonderland Treasury Manager Outed as QuadrigaCX Co-Founder
0xSifu, the pseudonymous treasury manager of the troubled Avalanche-based protocol Wonderland Money, has been identified as Michael Patryn, a former convict and co-founder of the collapsed cryptocurrency exchange QuadrigaCX. 0xSifu…
Frogs in Meltdown as Wonderland Turns to Black Forest
Wonderland’s TIME has plummeted around 40% in 24 hours. It’s currently trading at around $500 per coin, down 95% from an all-time high above $10,000. Wonderland’s TIME Trades Below Backing…
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