Is Wonderland (TIME) a Good Investment?

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Contributor, Benzinga
Updated: September 7, 2022

Decided Wonderland (TIME) is a good investment? You can get TIME by swapping AVAX from eToro or Crypto.com with the Trader Joe DEX.

Wonderland is a unique crypto project hoping to change the definition of a stablecoin by using a treasury to back up the value of each token. Some fear that cryptocurrency isn't useful because there is nothing to back up the prices. However, Wonderland is using a treasury to back up the value of each token. Because of this, each TIME token has inherent value, so in theory the token has a price floor equal to this value. Wonderland does this to maintain its usability within its protocol. But is Wonderland (TIME) a good investment? For a little while it certainly was but it has since seen a devastating crash in price due to various issues and may never recover.

What Is Wonderland (TIME)?

Wonderland describes itself as a “non-pegged” stablecoin. Stablecoins are tokens that are pegged to an underlying asset. An example is Tether (USDT), which is tied to the U.S. dollar. However, TIME is not pegged to any particular currency. It chose to reject pegging to a specific asset because governments can control the value of currency, and Wonderland does not want to take this risk. Instead, it uses a treasury filled with several types of tokens to back up the value of each token.

Wonderland took the framework from OlympusDAO (OHM) and created its own project on the Avalanche blockchain. OlympusDAO operates similarly, using a treasury to back up the value of each token. This means that one token is technically pegged to the value of the assets in the treasury divided by the total circulating supply of tokens. However, the 2 projects use different investments to back up their tokens and operate on different blockchains. The treasury could also be plundered by the team, destroying the peg.

Like OlympusDAO, Wonderland also hopes to create a decentralized autonomous organization (DAO) to vote on upgrades to its protocol. Once Wonderland’s DAO is up and running, members can vote on issues such as how much each token should be backed with and how much TIME should be given to stakers.

Staking is one of the more attractive features for those looking into Wonderland. The project’s APY for staking has gone over 100,000%, and it is currently fluctuating around 80,000%. These numbers are exorbitantly high. A $1,000 investment will become $900,000 if the APY and value of TIME stay constant. However, it is extremely unlikely that both of these variables will hold steady for an entire year. The APY hasn't changed too much recently but TIME has already seen massive price changes since its launch in September 2021. In this way, it is quite similar to OHM. Both tokens reached incredible all-time highs early on when investors swarmed to buy and stake tokens and have crashed more than 99% since.

Wonderland (TIME) Price History

TIME was released on September 2, 2021 for $570 per coin. Within 2 weeks, the price skyrocketed to nearly $13,000 per coin as investors bought up all the supply hoping to stake and earn the massive APY figures. However, it quickly fell and had been trading between $8,000 and $9,000 for quite some time. After a series of unfortunate events, the token had a drastic drop in price and seems to continuously fall. It is more stable than it was for the first few months but it still seems to be in a state of consistent decline with a few exceptions.

Crypto Market

In November of 2021 the crypto market began to crash, and along with it token prices saw a significant decline in their value. Along with bigger market cap projects like Bitcoin and Ethereum, TIME token as well as many others tokens saw steep drops in prices. By January, the crypto market had erased over $1 trillion in market cap, over one-third of its value gone in just two months. TIME fell over 95% along with the crypto market, however, this isn't the only thing that caused the steep decline.

Poor Team Discovered

Many team members looked toward liquidation once prices began to fall, including the Chief Financial Officer (CFO), Sifu. Sifu left the project along with $45 million from the Wonderland treasury. Taking money out of the treasury that was supposed to be the backbone of the project only led to further declines in price. In under 48 hours, a viral tweet from the popular web3 influencer @zachxbt claimed that Sifu, the original CFO behind the project, was Michael Patryn. Patryn is a convicted felon who was found guilty of multiple scams in the past. One being that he was a co-founder of the Canadian Crypto exchange QuadrigaXC, famous for running off with $169 million in assets. Holders of TIME were not happy to know that their money was being managed by someone with such a spotty past and lost faith project that would ever ne restored. It's hard to be sure that Wonderland (TIME) is a good investment now that this information is out.

Wonderland (Time) Competition

Wonderland’s main competitor is OlympusDAO. They both offer similar features, such as a DAO and staking, with key differences.

Wonderland is based on the Avalanche chain, and OlympusDAO is based on the Ethereum chain. While both chains have their benefits, Avalanche may be a bit better for this specific use because many transactions are involved with the purchasing and use of TIME and OHM. Avalanche offers far lower fees than Ethereum and may attract more users for this reason. If you want to see a full comparison of Avalanche and Ethereum, make sure to check out Benzinga’s Avalanche vs. Ethereum

Another difference between the 2 projects is the APY offered to stakers. OHM currently offers an APY around 469%, while TIME sits around 75,978.4%. Clearly, TIME’s is much higher. However, the APY is so high for both projects because it mints new tokens to give to stakers. Essentially, it creates and gives out new tokens. This process decreases the value of each existing token. 

How to Buy Wonderland (TIME)

If you are looking to purchase TIME, you need a wallet and a funded account on a centralized exchange. Some of the best exchanges that offer AVAX are eToro and Crypto.com. With this, buy Avalanche (AVAX). From there, send it to your wallet. Once it is in your wallet, navigate to the Trader Joe DEX and trade your AVAX for TIME. After this, your TIME will be stored in your wallet.

While that was just a quick rundown of how to purchase TIME, check out the full article on how to buy the token.

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Best Hardware Wallet for Wonderland (TIME)

If you own TIME or are thinking of purchasing it, you may want a safe place to store your crypto. Hardware wallets are arguably the safest way to store crypto as they require a physical device to be present in order to send crypto.

Best Hardware Wallet: Ledger

Ledger is an industry leader offering extremely safe and durable hardware wallets. The wallet allows users to not only send and receive crypto but also stake directly from the wallet. This system allows your investments to simultaneously be safe and productive. 

Ledger currently offers Nano S and Nano X models. Both are extremely safe, but the Nano X is designed for more advanced users while the Nano S is cheaper and for beginner users. 

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BZ

Bonus Section:

Keep an eye on the size of Wonderland’s treasury. This information can be found on its website and is used to back up each token’s value. A sudden change in the size of the treasury could have a dramatic impact on price.

Cryptocurrency Market Outlook

2022 saw incredible highs for some cryptos and eventually low lows for almost all of them. The market is undeniably at a crossroads right now though it's impossible to tell for sure which direction it will go. Either way, no one knows where the markets will go. 

A debate has emerged surrounding the usability of Ethereum. With gas prices soaring, fees are becoming too expensive for some to continue using the network. Because of this, many are looking for other blockchains to use as a solution. Both Avalanche and Solana have been in this conversation. The upcoming Ethereum Merge may shake up the Layer 1 competition yet again though!

Is Wonderland (TIME) a Good Investment?

In the long term, TIME will likely go down because new tokens are created every 8 hours and reduce the value of each existing token. However, the treasury backs up the value of each token so that it holds inherent value through these assets.

In the short term, TIME may appreciate because of its novelty and extremely high APY. If these buyers can drive up the price more than the stakers send it down, then the price will go up. However, since more people are beginning to stake with Wonderland, rewards are getting smaller and may push stakers into selling their position. 

If you are willing to take a risk on a token that could potentially offer a solid return on a short-term investment, TIME may be the token for you. However, its important to take notes of the recent events that have happened with the project before investing.

Frequently Asked Questions

Q

Who is Sifu?

A

Sifu was pseudonymous the Chief Financial Officer and co-founder of the Wonderland project. After his name surfaced as Michael Patryn, TIME lost over 60% compared to the previous week. He was also the co-founder of crypto exchange QuadrigaCX, which collapsed in 2019. Patryn has been convicted for multiple crimes in the past.

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