Terra (LUNA) Sinks Again as Wonderland Project Gets Pulled

Terra (LUNA) enables users to trade Terra stablecoins. Native currency LUNA is used to meet network fees, take part in voting, in addition to stabilizing the price of Terra’s stablecoins.

Terra adjusts the supply of stable coins based on demand. With the use of an algorithm, Terra incentivizes the Terra network to exchange LUNA and stablecoins at favorable exchange rates to adjust the supply of stablecoins.

Terra’s Rise and Fall

Back in December, Terra reportedly surpassed Binance Smart Chain (BSC) to become the 2^nd largest DeFi blockchain. Significantly, Terra also overtook Avalanche (AVAX), Solana (SOL), and Tron (TRX).

Fortune has not been on Terra’s side, however. At the time of writing, Terra was back at the #10 spot on CoinMarketCap, while Solana sat at #7. Avalanche was not far behind at #12.

Last year, LUNA delivered investors a 13,000% return. It could have been more impressive, with LUNA hitting an ATH $103.36 in late December before ending the year at $85.48.

From December’s ATH, however, LUNA has tumbled by 56% to a Sunday current month low $45.53.

Wonderland Project Hits LUNA

Late last week, news hit the wires of OxSifu, a member of decentralized project Wonderland, being Michael Patryn. Identity hidden but known to project co-founder Daniele Sestagalli, Michael Patryn was co-founder of Canadian exchange QuadrigaCX. In 2019, QuadrigaCX collapsed, with more than $130m in funds unaccounted for. Prior to this, Patryn had also spent 18-months in a U.S Federal prison before deportation to Canada. Patryn had pled guilty to offences that included credit and bank card fraud and computer fraud amongst other crimes.

Market reaction to the news was swift. Wonderland token TIME collapsed to sub-$400 levels. TIME had struck an ATH $9,948 back in early November 2021.

For the Terra network and LUNA, linkage to platform Abracadabra has done the damage. Daniele Sestagalli is also co-founder of Abracadabra. Users can stake Terra’s UST on Abracadabra to lend Magic Internet Money (MIM). MIM is a soft-pegged USD stablecoin that is minted by lending platform Abracadabra. Market reaction to the co-founder’s knowledge of OxSifu’s true identity has impacted platforms by association.

Wonderland Project Comes to an Untimely End

Over the weekend, project co-founder Sestagalli announced an end to the Wonderland project. The co-founder stated that the project will reimburse those who want out, while finding a new home for those how stand firm to the “Frog Nation Vision”. Members of the community are known as Frogs.

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Wonderland experiment is coming to an end. It is clear from the vote that the community is divided. The core and heart of Wonderland is still the community. If we cannot find agreement on wether to continue or not, it means that we failed.

— Daniele never asks to DM (@danielesesta) January 30, 2022

LUNA Price Action

At the time of writing, LUNA was down by 7.58% to $46.92. Sunday’s pullback left LUNA down by 45% for January, with LUNA set for a 9^th day in the red from 11-sessions.

Near-term, LUNA would need to move through the 50-day EMA at $69.2 to bring January’s high $93.70 into play. A move back through to $90 levels would then give LUNA a run at late December’s ATH $103.40.

2022 price predictions are bullish for LUNA, with predictions of as high as $200 having done the rounds.