Join Our Telegram channel to stay up to date on breaking news coverage
The CRV/USD price chart outlook seems promising despite the recent Curve Finance hack. This comes despite the current stall in Bitcoin (BTC) price and the overall lack of momentum in the market.
Notably, the current state of the market has left investors susceptible, with many looking for budding projects to make a profit. This is why BALD developers from the Coinbase Layer- 2 token found it easy to rug-pull investors, making away with almost $70 million in Ethereum (ETH).
Curve Finance Hack – Explained
On July 30, Curve Finance experienced a hack due to a vulnerability in Vyper. This is the programming language used in certain aspects of their system.
@CurveFinance has been the victim of hack because of a vulnerability in Vyper, the programming language used in parts of the Curve System.
None of the pools in our strategy has been affected, but we are monitoring the situation closely and will update you soon. pic.twitter.com/uSJ6GNRzxW
— 512M | DeFi Research (@512M_AG) July 31, 2023
The exploit in Curve Finance pools has raised significant concerns about risks in the decentralized finance (DeFi) space. Multiple protocols, including Curve, JPEG, Alchemix, and Metronome, were affected, resulting in substantial losses.
According to DefiLlama, the hack saw Curve Finance Total Value Locked (TVL) decline by almost 50%, moving from $3.26B to $1.67B within just 2 days.
DeFi Protocols Face Potential Bad Debt Following Curve Finance Exploit
One primary concern is the potential bad debt Aave faces if Curve Finance CEO Michael Egorov cannot repay his loans. Egorov holds a $100 million loan backed by 427.5 million $CRV tokens, which is nearly half of the circulating supply.
The platform’s stability is at risk, with a 10% drop in the $CRV value.
Additionally, concerns are mounting about Hatom Protocol facing similar situations due to the hack’s fallout. The hacker utilized Egorov’s wallet to make transactions, selling large amounts of $CRV to institutions. These institutions include Cream Finance, DWF Labs, and Machi Big Brothers, even selling $5 million worth of $CRV to Justin Sun.
More and more institutions and investors bought $CRV via OTC!
Machi Big Brother bought 3.75M $CRV.
DWF Labs bought 2.5M $CRV.https://t.co/MQg382LigF bought 2.5M $CRV.
…Michael Egorov has sold a total of 39.25M $CRV via OTC and received 15.8M $USDT.https://t.co/hQBlW5WG6J pic.twitter.com/NMIQ2p05ZL
— Lookonchain (@lookonchain) August 1, 2023
Large Holdings Pose Risks
Furthermore, Egorov’s loans on Aave and Fraxfinance add to the overall DeFi risks. His $305 million CRV-backed loan on Aave faces potential liquidation with an approximately 33% drop in $CRV price. Furthermore, his holdings on Fraxfinance carry an astronomical interest rate that could lead to eventual liquidation, regardless of the $CRV price.
⚡️Curve Finance founder's $100M debt could trigger a DeFi implosion
Curve founder, Michael Egorov, currently has a ~$100M loan backed by 427.5m $CRV (about 47% of the entire CRV circulating supply). On Aave, Egorov has 305 million CRV backing a 63.2 million $USDT loan. pic.twitter.com/AzVwRGScLi
— ᴍʟᴊ || #Borderless2.0 (@TraderMlj) August 1, 2023
CRV Price Analysis Following Curve Finance Hack
Overall, Curve Finance suffered a devastating hack of over $42 million when hackers exploited a vulnerability in the Vyper programming language. Although the situation was brought under control by Curve developers, significant funds were drained. The hack temporarily impacted the Curve token, but it shows signs of recovery now.
Curve Finance got hacked for over $42 million.
Hackers took advantage of a vulnerability in the Vyper programming language to hack into the Curve pools that used Vyper smart contracts.
The pools running Vyper 0.2.15, 0.2.16, and 0.3.0 were affected.
Curve devs have the… pic.twitter.com/9DoDP687fO
— Dyor Exchange (@dyorexchange) July 31, 2023
The four-hour chart for the CRV/USD trading pair displays positive indications following the recent hack of Curve Finance. Notably, the attack caused a 34% decline in the cryptocurrency’s value. As developers took control and addressed safety concerns, the CRV token began to recover, reclaiming approximately 26% of its losses.
Technical indicators support this improvement, with the Relative Strength Index (RSI) treading toward the middle line. This indicates a potential bullish momentum. Additionally, the Awesome Oscillators (AO) histograms are turning green, suggesting increased buying pressure.
The price may encounter initial resistance at the 38% Fibonacci Retracement level. Nevertheless, there is a possibility of breaking through this barrier and further ascending toward the $0.8 level.
Related
Most Searched Crypto Launch - Pepe Unchained
- Layer 2 Meme Coin Ecosystem
- Featured in Cointelegraph
- SolidProof & Coinsult Audited
- Staking Rewards - pepeunchained.com
- $10+ Million Raised at ICO - Ends Soon
Join Our Telegram channel to stay up to date on breaking news coverage