Daniele Sestagalli Projects Tank Amid Wonderland Drama

Daniele Sestagalli Projects Tank Amid Wonderland Drama


Key Takeaways

Wonderland, Abracadabra, and Popsicle have been hit hard in the market today.
The weak price action follows the news that Wonderland’s treasury manager co-founded the QuadrigaCX exchange before it shut down with $169 million of customers’ funds.
Sestagalli has published a new blog post today suggesting a path forward for the Wonderland project.

Share this article

It’s been a tough few days for the Frog Nation. 

Wonderland Plummets on 0xSifu Saga 

The Frog Nation is licking its wounds. 

Wonderland Money, the Avalanche-based Olympus DAO fork created by Daniele Sestagalli, suffered a dramatic downturn Thursday when it was revealed that Sestagalli had enlisted a criminal to oversee the project’s treasury. Private messages shared by an on-chain analyst known as zachxbt revealed that Wonderland’s pseudonymous treasury manager 0xSifu was Michael Patryn, a convicted fraudster who co-founded QuadrigaCX exchange before it was shut down with $169 million in investors’ funds unaccounted for. Following the revelation, Sestagalli admitted that he had known of 0xSifu’s identity for a month. 

Wonderland traded in the red as the news broke, briefly hitting an all-time low of $262. Following a short-lived recovery, it’s down again today, currently trading at $330. It’s almost 97% short of its record high. Wonderland is part of a class of so-called “DeFi 2.0” projects that aim to offer innovative ways to capture liquidity and offer yield for users. It uses a rebasing mechanism similar to the one popularized by Ampleforth and incentivizes users to stake tokens to generate yield. Notably, investors can also use the tokens they earn as collateral to borrow a stablecoin called Magic Internet Money to further increase their yields. As there is high leverage within the system when more users deposit collateral, slight downward moves can cause violent liquidations. There was a liquidation cascade Monday that saw Sestagalli himself lose an eight-figure sum. Wonderland and other similar protocols have occasionally been branded as “Ponzi” schemes by critics as they rely on new users entering to prop up the incentives and often offer questionably high yields. Another similar protocol to Wonderland called Redacted Cartel is currently paying out 86,409% APY to users who stake its BTRFLY token. 

Daniele Sestagalli Projects Turn Red 

Besides Wonderland, Sestagalli’s two other projects, Abracadabra Money and Popsicle Finance, have also been hit hard over the last few days. Abracadabra, which mints the Magic Internet Money stablecoin via a token burning mechanism, is down to a market cap of $429.1 million after its SPELL token dropped 14.8%. Magic Internet Money is also trading below its peg at $0.98 after its Curve Finance pool got drained. Popsicle, meanwhile, is down 7.7% today, continuing a months-long descent from its November all-time high of $66. It’s about 94% short of the peak at current prices. 

Wonderland, Abracadabra, and Popsicle are three preferred projects of the “Frog Nation,” a community of crypto enthusiasts that gathered around Sestagalli soon after he rose to prominence late last year. Sestagalli led the Frog Nation on a campaign dubbed OccupyDeFi in what he described as an attempt to bring decentralization back to the DeFi space. Sestagalli took shots at centralized stablecoins like USDC, as well as protocols like Maker (the early Ethereum project relies on large amounts of USDC to collateralize its DAI stablecoin). 

While Sestagalli’s three projects have experienced major corrections, he appears set on making amends. A few hours ago, he published a Mirror post asking the community to proceed with a vote to decide Wonderland’s future. “I made a mistake, got blinded and I am sorry for that, Wonderland itself has achieved some big things and the aspect of an Investment DAO to me still is incredibly interesting,” he wrote with a suggestion to recruit professionals to manage the treasury. “It is now up to the community to decide.” 

Disclosure: At the time of writing, the author of this feature owned ETH, BTRFLY, CRV, and several other cryptocurrencies. 

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Wonderland Treasury Manager Outed as QuadrigaCX Co-Founder

0xSifu, the pseudonymous treasury manager of the troubled Avalanche-based protocol Wonderland Money, has been identified as Michael Patryn, a former convict and co-founder of the collapsed cryptocurrency exchange QuadrigaCX. 0xSifu…

Is Time on our Side? The Case for Bitcoin’s Lengthening Cycles

One of the many unique features of BTC is its halving process, which is often accompanied by a bullish movement and preceded by bearish consolidation. Bitcoin’s halving events have been…

Frogs in Meltdown as Wonderland Turns to Black Forest

Wonderland’s TIME has plummeted around 40% in 24 hours. It’s currently trading at around $500 per coin, down 95% from an all-time high above $10,000. Wonderland’s TIME Trades Below Backing…

DeFi Project Spotlight: Abracadabra.Money, DeFi’s Magic Money Sp…

Abracadabra.Money is a lending protocol that allows users to deposit interest-bearing assets as collateral to borrow a stablecoin called Magic Internet Money that can be used across multiple blockchains. Abracadabra.Money…


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *