The CurveDAO cryptocurrency is known as one of the systemically important blockchains for the decentralized finance (De-Fi) sector. Both it and several decentralized protocols were attacked on Sunday by hackers who stole cryptocurrencies worth more than $24 million. A similar attack took place on Ethereum in 2016, when $55 million worth of ETH was stolen at the time. Curve is an important project for the decentralized finance sector. The cryptocurrency mediates many De-Fi transactions. A deep drop in its price could bring a sizable discount to the altcoin market and Bitcoin itself. And alert regulators like the SEC to intervene in the market.
- JPEG token investors (about $16 million in losses) and NFT lending protocol Alchemix and MetronomeDAO ($13.6 and $1.6 million in losses) were affected in the attack.
- The attack also resulted in a dynamic discounting of the attacked CurveDAO cryptocurrency, which raised concerns about the huge $168 million position of the project's main investor and CEO Michael Egorov;
- Investors may still want to divest their reserves in the face of a possible repeat of the attack by an unidentified group. Momentarily, the declines on CurveDAO stopped after Justin Sun, CEO of the Tron cryptocurrency approved the support and decided to assist Egorov by dismissing the risk of liquidating his positions;
- In addition to Justin Sun, CRV tokens were also bought by Jeffrey Huang, DWF Labs - Egorov sold a total of o. 39.25 million CRV on the over-the-counter market receiving $15.8 million in return
- Sun also acted in its own self-interest because CurveDao's decline could hit its market exposure directly. The billionaire was to buy 5 million CurveDAO (about $2.3 million) at $0.4 in an over-the-counter transaction from Egorov. At the time, the token's price on the market was $0.59;
- The Egorov's liquidation level is $0.37, which is around CurveDAO's November 2022 price lows. Speculators may push for a token that would trigger a significant discount to the crypto market - especially altcoins.
DeFi protocols, especially Avalanche, could react to further depreciation of CurveDao. CRV is used not only as a base trading currency but also as a base in De-Fi's billions of dollars worth of trading pools. It also serves as a base hedge for Avalanche. For the moment, Curvedao managed to recover some of its losses, however, the renewed downward movement took place after reaching $0.60.
CurveDao cryptocurrency, H4 interval. Source: xStation5
