Cosmos Crypto Project Kujira Facing a Massive Liquidation Event, Token KUJI Tanks by Over 47%

The team claims their leveraged positions were attacked.

Cosmos crypto project Kujira is facing a massive liquidation event. The price of its token KUJI has tanked by over 47% since early Thursday. The Kujira team claims that their leveraged positions were attacked.

According to the Kujira Foundation, there are four leveraged LP positions on its Ops wallet – KUJI/USDC, KUJI/ATOM, KUJI/USK, and USDC/USK. As the prices continue to drop further, these positions are now being liquidated. The liquidations have caused the wallet balance to drop to $8.7 million from over $12.4 million earlier today.

Kujira still has $5 million debt pending liquidation

In a Telegram post, the Kujira team said that people are targeting their positions.

“As a team we thought the best use of a portion of ops funds would be to leverage and deploy across the ecosystem in order to bootstrap liquidity and activity,” the post said. “Sadly this coincided with various attacks. People targetted the team positions, and it’s been a constant fight since these positions were created.”

According to the analysis posted by Rarma on X, over $3 million in KUJI is feared to have been liquidated already, while another $5 million still remains in outstanding debt pending liquidation.

The price of KUJI has dropped from today’s opening price of $0.9251 to $0.4818, marking a decrease of 47.9%. At the current price, KUJI is down over 91% from its all-time high. A day earlier, Kujira’s stablecoin USK also briefly got de-pegged, dropping to $0.94.

Kujira insists this is not a Terra situation

The situation has had some people in the crypto space say Kujira project is a “slow rug” and others have dubbed it the next Terra, especially since both projects are based on Cosmos blockchain. However, the Kujira team refuted the speculation, saying “This isn’t a Terra type situation.”

“It’s a contained amount of debt, that will be dealt with one way or another. It is hurting KUJI price which we realise, but can only ‘spiral’ so much,” Kujira said.

It’s worth mentioning that Kujira started off on the Terra Classic blockchain before moving to its layer-one network on Cosmos after Terra imploded.

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