While reserve-based crypto assets like gold tokens and stablecoins have been able to weather the crypto market carnage over the last two weeks, rebase tokens like wonderland (TIME), and Olympus (OHM) have seen massive losses. Wonderland is down more than 96% since the crypto asset’s all-time high (ATH), and OHM is down over 95% since it’s own ATH. Furthermore, the Wonderland project is surrounded by controversy as it’s been assumed that one of the founding members was a former Quadrigacx employee.
Rebase Token Economy Drops From $3.2 Billion to $1.74 Billion
The total value locked (TVL) across all the decentralized finance (defi) protocols in existence today is just under the $200 billion mark. While many defi projects have managed to stave off the recent crypto market rout, others have seen their valuations slide during the last two weeks. Lots of funds have moved into reserve-based crypto assets like stablecoins and gold-backed tokens in order to hedge against the price fluctuations.
Stablecoins and gold tokens have been able to hold their pegs, specifically to the specific asset the tokens are connected to, such as the U.S. dollar or one troy ounce of .999 fine gold. On the other hand, reserve-based rebase tokens have seen massive losses over the last few months and even more so during the last two weeks. The entire list of more than two dozen rebase tokens listed by market valuation is worth $1.63 billion, as it lost 11% over the last day. The crypto asset olympus (OHM) has dropped 39.3% this past week and is down 95.3% from the crypto asset’s $1,415 per unit ATH.
Wonderland, an Avalanche project based on the Olympus protocol, has seen its two native crypto-assets wonderland (TIME) and wonderland (WMEMO) follow the same fate as OHM. TIME’s falter over the last two days has been worse than OHM’s drop, as weekly metrics indicate TIME’s price is down 61.8%. Wonderland (TIME) has lost 96.4% of its value since tapping a $10,063 ATH three months ago.
Wonderland Project Surrounded by Controversy
In addition to the major losses, Wonderland creators have been under scrutiny in recent times. According to a crypto supporter on Twitter, Wonderland team member @0xsifu or “Sifu” helped co-found the bankrupt Canadian crypto exchange Quadrigacx with its founder Gerald Cotten. Quadrigacx collapsed in 2019 and there was a lot of controversy surrounding Gerald Cotten’s death and his associates. Sifu has been operating Wonderland’s treasury with the project’s founder, Daniele Sestagalli. In a blog post, Sestagalli confirmed the accusations concerning Sifu and further stressed that Sifu must step down from his Wonderland role.
Now having taken some time to reflect, I have decided that he needs to step down till a vote for his confirmation is in place. Wonderland has the say to who manages its treasury not me or the rest of the Wonderland team.
Sestagalli also discussed the community’s issues with Sifu on Twitter. “I have no bias about @0xsifu he has became a friend and part of my family and if my reputation of judgment will be hit by his dox, than be it. All frogs for me are equal,” Sestagalli said. “As I fight for him I will fight for anyone else that has proven to me to be a good actor despite the past,” he added.
Hardcore Wonderland supporters are referred to as “frogs” and besides the contentious issues with Sifu, frogs are also upset about the falling price. Wonderland-based Twitter threads and the team’s Discord and Telegram channels are filled with angry frogs.
“We should not have to pay for your error in judgment,” one individual wrote on Twitter. “Just offer [a] clear refund or right the ship. You say he needs [a] second chance. Wake up there are dodgy doings in the project as well.”
The Wonderland protocol itself is also connected to popular defi projects like the stablecoin magic internet money (MIM), Popsicle Finance, and Abracadabra.money. As OHM, TIME, and WMEMO have shed enormous amounts of value, rebase token market caps below them have also shuddered significantly. Ampleforth (AMPL) shed 17.4% this past week and redacted cartel (BTRFLY) lost 69% in seven days. Klima dao (KLIMA) lost 34.2% over the last seven days and temple dao (TEMPLE) has decreased in value by 31.2% this past week.