{"id":1881,"date":"2022-01-31T06:33:42","date_gmt":"2022-01-31T06:33:42","guid":{"rendered":"https:\/\/tradersofcrypto.com\/news\/?p=1881"},"modified":"2022-01-31T06:33:42","modified_gmt":"2022-01-31T06:33:42","slug":"terra-luna-why-this-booming-token-erased-30-of-its-value","status":"publish","type":"post","link":"https:\/\/tradersofcrypto.com\/news\/terra-luna-why-this-booming-token-erased-30-of-its-value\/","title":{"rendered":"Terra (LUNA): Why This Booming Token Erased 30% of its Value"},"content":{"rendered":"\n

Terra (LUNA) looked like one of the most resilient tokens in DeFi and gamified finance, with expectations of rallying above $100 in 2022. But over the past week, LUNA is down<\/a> more than 27% and traded at $46.07 with further losses early on Monday. The LUNA price weakness went above the overall market slide<\/a> in the past few days.<\/p>\n\n\n\n

In this rapid price drop, not even the high staking rate of LUNA managed to protect the token, which is used to generate UST dollar-pegged coins. LUNA sank despite reports of newly launched games on the network.\u00a0<\/p>\n\n\n\n

Terra Project Tied with QuadrigaCX Exchange<\/strong><\/h3>\n\n\n\n

The chief reason for the crash is that one of the subsidiary projects of Quadriga, Wonderland, was found to be ran by a former co-founder of the QuadrigaCS exchange. This market operator became notorious for evaporating hundreds of thousands of BTC<\/a> after the death of co-founder Gerald Cotten.<\/p>\n\n\n\n

What is the Wonderland Project<\/strong><\/h3>\n\n\n\n

Wonderland is a DeFi project boasting of more than $685m in value locked. The DeFi returns are exorbitant, more than 82,500% annualized, raising some red flags as to the project\u2019s viability in the long term. <\/p>\n\n\n\n

The Wonderland scandal was sparked when an anonymous user unearthed the real name of one of the project\u2019s co-founders. It turns out Michael Patryn, former QuadrigaCX partner, was also treasury operator for the now-defunct decentralized exchange. <\/p>\n\n\n\n

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1\/ This needs to be shared @0xSifu<\/a> is the Co-founder of QuadrigaCX, Michael Patryn. If you are unfamiliar that is the Canadian exchange that collapsed in 2019 after the founder Gerald Cotten disappeared with $169m

I have confirmed this with Daniele over messages. pic.twitter.com\/qSfWNnQPhr<\/a><\/p>— zachxbt.eth (@zachxbt) January 27, 2022<\/a><\/blockquote>