Kujira Foundation's operating wallet was liquidated, and the token fell by 40%

BlockBeats news, on August 1, the price of Kujira tokens fell 40% today, from $0.97 to $0.57, due to the liquidation of the Kujira Foundation's operating wallet.

The foundation has assumed leveraged liquidity provision positions worth millions of dollars, but has failed to properly manage them on its own DeFi platform.

The team claimed in a statement that the operating funds used for leveraged positions are intended to increase liquidity and stimulate activity on its DEX. The liquidation occurred because the loan obtained by the team using its own Kujira (KUJI) token reserves was undercollateralized in a turbulent environment.

This led to automatic liquidation, triggering a chain sell-off and causing the price of collateral assets to fall. Data from Pulsar Finance shows that the team's wallet still has $2 million in debt.