The native token of the Terra ecosystem dropped sharply after the controversy surrounding Wonderland. 

The token was down by 17% on Friday. It traded as low as $47.56, the lowest it has traded since November. Recently, Luna was trading around $51.89 and was down from its all-time high price of $100.17 which it reached in December.   

The fall in the price was the result of the expose made by alias twitter user “Zach”, who has revealed the name of one of the core members of Wonderland Project to be Michael Patryn, co-founder of Canadian exchange QuadrigaCX. 

These revelations made their presence felt in the market by relating to another project run by Wonderland founder Daniele Sestagalli, Abracadabra. This is having an impact on Terra because UST can be staked to lend MIM, a Stablecoin that is soft pledged to US Dollar and is minted by the lending platform of Abracadabra. The price of LUNA is tied to the total value locked of the UST Stablecoin.   

Disclaimer: The article should not be considered as any financial advice. It is advisable to conduct thorough research before investing.

Photo by – geralt on Pixabay