Panic selling around Terra (LUNA) deepened 25% after news of the Magic Internet Money (MIM) stablecoin funding cut. Interacting altcoin projects follow the decline at the 30% level. Why does the decline occur? Cryptocoin.com, we convey the details of the development…
Panic selling dragged 3 altcoin projects into decline
Stablecoin liquidity resource Terra (LUNA) tumbled 25% after news of the MIM stablecoin funding cut. According to TradingView data, LUNA has added another 27% to its bearish momentum over the past six days, after the ATH price dropped 32% from $103.33 hit on Dec. In the last month of 2021, LUNA was outperforming the market, up 133%. As the panic selling around altcoin intensifies, the decline is reflected in related stablecoins…
Financing issues
Apart from Terra (LUNA), CurveFinance (CRV) financing has also been withdrawn more than 40% from $530 million to nearly $300 million. The reason behind the lack of liquidity is mostly based on the news about Wonderland developers getting involved in QuadrigaCX scam. Numerous Wonderland projects depend on the Abracadabra protocol, which acts as the basis for the Magic Internet Money (MIM) stablecoin. The panic around LUNA has a knock-on effect as all altcoin projects are interconnected. Funding for UST and MIM stablecoins dropped nearly 30% almost instantly after news broke about scandalous developer anonymization, according to funding data.
In the latest development, the Wonderland DAO community has started a vote to leave the former Quadriga developers from the project. The project’s native token, TIME, dropped from $1,000 to $385 last week, attributed by the community to developers moving $200,000 worth of TIME tokens from the market.
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