Daniele Sestagalli abandoned DeFi after the Michael Patryn scandal, which led the TIME token to crash along with the other pegged tokens linked to him. His Twitter followers tease him by telling him to partner with Do Kwon and warning potential victims not to invest in Wonderland.

Daniele Sestagalli, the founder of Wonderland, announced his return to DeFi in a controversial way.

Following the Michael Patryn (0xSifu) scandal, Sestagalli stopped working in the DeFi sector in January. At the time, he said that the Wonderland experiment would end.

However, Sestagalli recently stated on Twitter that he would return while promoting the native token of Wonderland (TIME). In addition, he mentioned the Abracadabra-based stablecoin Magic Internet Money (MIM), which he also created.

Sestagalli stated that Wonderland would bring more technology but did not provide any details. He teased his Twitter followers with a short video, saying it has to become a frog seeking to rebuild the true kingdom.

Decentralized Reserve Cryptocurrency Protocol Wonderland Falls from Grace

Sestagalli built the decentralized reserve currency protocol Wonderland on the Avalanche blockchain network. Along with Michael Patryn, he released it as a fork of the Olympus DAO in late 2021.

The protocol managed up to around USD 1 billion worth of assets but plummeted to just USD 6.3 million, according to DefiLlama.

Sestagalli learned that Patryn had a criminal past but kept silent for a month. In that way, the ex-convict continued working as the treasury manager of Wonderland.

Only after crypto sleuth Zachxbt brought it to light did the DeFi confess that situation.

The news led the TIME token to crash along with all the other pegged tokens linked to the developer. After liquidating many people, Sestagalli promised to repay but has not yet done so.

Now Twitter Followers Tease the Founder of Wonderland

Daniele Sestagalli helped found a community of DeFi projects that he leads. It includes Wonderland, Abracadabra, and Popsicle Finance, whose participants call themselves frogs.

However, not everyone likes the idea of his return. Marc Pelosi, one of the first Bitcoin investors, jokingly told him he should partner with Do Kwon.

Do Kwon, founder of Terra, ran a USD 60-billion blockchain, which collapsed in May. In that regard, the Korean authorities are closely investigating the developer and his partner Daniel Shin.

Another Twitter user, identified as beartronix9, said that the return of Sestagalli would make the crypto community crazy. He commented that many would lose all their money if they invested in Wonderland.

Other users wonder when they will refund all the money they lost to that protocol. Something similar happened with those investing in the Terra (UST) token that have not yet recovered their funds.

TIME, the Wonderland token, is trading at around USD 15.79 and accumulated a 16.3% loss over the last week. Its daily trading volume is slightly above USD 134,278, while its market capitalization is about USD 14.22 million, according to CoinGecko. The crypto asset has dropped by 99.8% from its all-time high of USD 10,063 in November.

By Alexander Salazar

Polygon MATIC has been one of the best performing cryptocurrencies, showing upside power that could take it higher.

The MATIC cryptocurrency, native to the Polygon network, has been rising strongly recently, gaining more than 130% since the low of $0.26 marked in mid-June.

At the time of writing, MATIC is trading at $0.74. It accumulates a loss of 10.18% in the last 24 hours, as a general correction occurs in the crypto market.

Now it seems that everyone is waiting for the FED, waiting for interest rates to rise again tomorrow, Wednesday. This would cause an increase in the price of the dollar and a fall in risk assets.

In a survey conducted on the KEY ALERTS channel, we see that the majority think that the price of Bitcoin will go down after the FED announcement, which would undoubtedly affect other coins, including MATIC.

What’s Behind the Polygon Rise?

While this coin’s bullish rally started alongside the crypto market’s rally, excitement quickly mounted when Disney chose Polygon for its accelerator program.

The program that Disney is carrying out aims to accelerate the development of augmented reality, characters generated from virtual reality, and the issuance of non-fungible tokens (better known as NFTs).

It is not yet clear what role the Polygon network will play in this project, however, positivity immediately increased for MATIC.

On Twitter, Ryan Wyatt, CEO of @PolygonStudios, posted that, “We were the only Blockchain selected. It speaks volumes to the work being done here, and where we’re going as a company.”

MATIC has been one of the few coins that has managed to significantly offset the losses of the first half of the year.

This may be due to the high activity on this Blockchain, which, in fact, is currently higher than when the MATIC price is at all-time highs, signifying a major divergence.

Polygon MATIC Technical Analysis

The price is wrapped in a clear short-term uptrend, thanks to the continuous higher lows and higher highs that the price has been forming.

Currently, a reversal of this trend is in process. It seems that the support level to visit is $0.70.

Due to the uncertainty that permeates the entire risk asset market, it is possible that the current fall will last much longer, before regaining the dominant force.

To think that the bulls are back in control, the resistance at $0.95 must be overcome, leaving the ground clear for gains to as low as $1.34.

Has MATIC Hit Rock Bottom?

After falling to as low as $0.31, the Polygon MATIC rally has shown a lot of determination, heralding a possible resumption of the long-term trend.

Near $0.30 there is a large area of ​​demand that stopped the fall. In the event that the price seeks to visit it again, it is likely that purchases there will be encouraged again.

Recently, we saw the price break through immediate resistance on the weekly chart at $0.55, heralding a transition from the medium-term trend.

Now the ground is clear to $1.34. While we may see crypto market participants in trouble in the short term, once the turmoil passes we could see a rally in coins like this one, which has already been showing quite a bit of bullish determination.

By Audy Castaneda

The New York Times highlighted that Kraken is under investigation for allowing users in punished nations to acquire and sell cryptocurrencies. Five individuals linked to the entity and with knowledge of the inspection got cited. Authorities have become increasingly impatient with preventing crypto from being a tool to circumvent financial sanctions.

The New York Times highlighted that Kraken is under the radar of the United States Treasury Office of Foreign Assets Control for violating financial punishments. The department is figuring out whether users in sanctions-hit nations are allowed to purchase and sell crypto assets.

The Kraken exchange has come under the magnifying glass of the United States Treasury Office of Foreign Assets Control for disobeying the international sanctions imposed in various countries worldwide. The Treasury is currently determining whether Kraken allowed customers in sanctions-hit nations to acquire and sell digital currencies, according to various sources in the New York Times on July 26. Neither Kraken nor the Treasury has spoken out about the investigation.

The inspection started in 2019, and the New York Times spoke about five people linked to the entity or with knowledge of the procedure. These individuals explained that the U.S. government might apply a fine on the entity, which got already confronted by other regulatory entities in the region. The U.S. ​​Commodity Futures Trading Commission (CFTC) issued accusations against the entity in 2021, imposing a $1.25 million fine.

The Treasury is studying if the exchange made possible the trading of assets in profiles located in Iran, Syria, and Cuba. A former employee allegedly highlighted that Kraken made profits from customers in the said countries.

The report also highlights that more than 1,500 users got detected in Iran, 149 users in Syria, and at least 83 in Cuba. The investigation accentuates the efforts made by the authorities to impose control over the crypto market.

Crypto is Under the Magnifying Glass for its Use in Sanctioned Nations

Lawmakers expressed their worries about the role of digital assets in the circumvention of international sanctions imposed in various countries amid the war. Authorities have noted that crypto hinders the effects of these financial punishments, leading to increased scrutiny.

These departments have warned crypto exchanges not to allow their services to work with sanctioned nations, including Russia. Some have complied, like Binance, which closed multiple accounts connected to senior Russian officials. Other entities had shown more resistance to joining the cause, with Kraken announcing in March 2022 that it would not impose prohibitions on unsanctioned users.

North Korea and its accusations of hacking crypto entities have also captured the interest of government entities, including the U.S. Treasury. The department punished 3 ETH addresses allegedly connected to North Korea in April 2022.

EU Accelerated the regulation

The United States of America is not the only area to put a stop to crypto space. The European Union (EU) has also made various efforts to prevent illegal behavior and ensure investors’ safety.

EU member states that the nation finalized the extensive regulation procedures for the crypto space in July 2022. As a result, many crypto entities started declaring their status and current behavior in the region.

By: Jenson Nuñez