Terra finds itself mixed in the recent cryptocurrency scandal related to the Wonderland project, which associates with the platform Abracadabra.
Terra is a blockchain project based on the Proof-of-Stake mechanism. Considered the second-largest ‘smart’ contract network behind Ethereum, Terra allows investors to trade LUNA without hurdles. LUNA is the platform’s native currency, facilitating voting on platform governance, solving network fees, and stabilizing Terra’s stablecoins prices.
Terra platform maintains uniqueness in the crypto space with its fiat-tied stablecoins. The project adjusts stablecoins supply according to demand through an algorithm. The blockchain achieves that by incentivizing the platform to exchange stablecoins and LUNA at favorable rates to adjust stablecoins supply.
LUNA’s Journey to Top Ten
Terra rose to surpass Binance Smart Chain to be the second-largest DeFi network in 2021 December. The final quarter of last year saw Terra overtaking Avalanche (AVAX), Tron (TRX), and Solana (SOL), rising to the second spot in the decentralized finance marketplace. Nevertheless, Terra ranks 9, with a market capitalization of $29.86 billion at this publication.
LUNA gained 13,000% in 2021, climbing to the top ten crypto list by market capitalization. The alternative token surged from its 2021 open of $0.65 to strike an ATH on December 27 at $103.35. However, LUNA dropped to end the year at around $85.48.
The token saw a bearish start this year alongside the overall cryptocurrency market. For now, LUNA stays 41% down at $50.45 as far as the current month is concerned. As the overall cryptocurrency market struggled in January, forces beyond the crypto industry contributed to the correction.
Wonderland Controversy Sees LUNA in Red
The news about Michael Patryn, QuadrigaCX exchange co-founder, being part of Wonderland hit the wires this week. The Canadian trading platform QuadrigaCX collapsed following a scam that led to about $133 million losses. Moreover, Patryn spent 18-month in United States prison after pleading guilty to crimes that included bank and credit card fraud.
The news had the Wonderland coin, TIME, crashing to $400. TIME hit its all-time peak of $9,948 in 2021 November. TIME’s downswings pored to LUNA as the Wonderland project connects to the Abracadabra platform. Daniele Sestagalli, the Wonderland projects co-founder, is also Abracadabra’s founder. Users can stake Terra’s UST to lend MIM (Magic Internet Money), a soft-tied dollar stablecoin minted through Abracadabra. Meanwhile, reports show Sestagalli knows Patryn’s past.
Terra Price Actions
While publishing this content, LUNA traded at $51.94 following a 2.95% increase, following support from the broad cryptocurrency marketplace. Meanwhile, a short-term rebound past $80 will see the alt hitting this month’s peak of $92.67.eeping away the $90 level will mean eyeing December’s peak at $103.36.