My DeFi Wonderland (TIME) blunder


Bienvenidos mis ositos, tu siempre eres mis queridos! (Welcome back little bears you are always my dears!)

Well frens I have to admit my stupidity.

By now you have probably heard of the Wonderland (TIME) scandal. First you have my condolences if you also lost money in this dumpster fire.

https://thedefiant.io/frog-nation-cfo-quadrigacx/

https://thedefiant.io/frog-nation-cfo-scandal/

I wrote about them a few months back along with Olympus DAO.

https://www.publish0x.com/how-to-transition-from-tradfi-to-defi/defi-vs-tradfi-bonds-why-olympus-dao-ohm-and-wonderland-time-xnxyrll

At the time the bonding mechanism fascinated me.

I was also sucked into the populist rhetoric and engaging social media personality Daniele Sestagalli. I knew going in it would be a risky bet. After all even if you’re a complete noob to DeFi you should know that 10,000% APR look to good to be true.

A lot of financial sins get covered up in a bull market. Now that the bubble has popped the stench of trashy speculations are starting to stink up the place.

Heaps of former high flying stocks are down, major cryptos are down and speculative crypto assets have plunged. This triple whammy of pain forced a lot of levered speculators to puke their positions.

The Wonderland fiasco was like an extra slap to the face after you’ve experienced a hard kick to groin and then peed on when you’re already down.

In hindsight I missed quite a few red flags with Wonderland. The project couldn’t quite find a consistent narrative. It seemed like every other week there would be changing protocol goals. At first there was a promise of an RPG, then they bought a crypto gambling project.

When the price of Olympus and other OHM forks started to collapse, Wonderland talked of pivoting to a hedge fund or SPAC model. When Wonderland stopped the bonding process I should’ve gotten out.

When I saw the tweet from Zach (kudos to this guy!) I salute the DeFi whistleblowers that bring the truth to light.

I facepalmed hard and started scouring the internet for more news and insight.

https://twitter.com/zachxbt

Wonderland attempted a failed Abracadabra merger. That sparked a mass exodus from MIM and the Spell token. There was a guilt by association spillover to other projects. Even LUNA and UST got some collateral damage (no pun intended).

Eventually 0xsifu was ousted as the CFO.

As of this writing, there is a chance some will be able to claim their proportionate share of the Wonderland treasury.

The worst part of this whole ordeal may prompt bureaucrats around the world to “do something” about those “shadowy supercoders” in DeFi.

This might spark a crackdown on anything that even smells like a crypto project. I hope I’m wrong on this but I wouldn’t be surprised.

Again you have my condolences if you also lost money in this debacle.

My only solace was practicing reasonable position sizing. I lost some money but my portfolio will live to fight another day.

This was not my first time getting rekt and probably won’t be my last.

This served as another painful lesson that will force me to be more careful in screening future trades such as analyzing the tokenomics, skimming through their gitbooks, and monitoring their progress.

Sigh DeFi is risky but don’t let this scare you away from investigating DeFi opportunities. I look forward to writing about them.

Well there you go guys, I hope you learned something interesting.

Be sharp, stay hungry let’s get that money!

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Suerte Panda
Suerte Panda

Fuzzy Defi Enthusiast


How to transition from TradFi to DeFi
How to transition from TradFi to DeFi

The easiest way to convert DeFi infidels is to show them modern versions of TradFi services that they already use.

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