The Curve Finance hack of the week follows the competition from traders looking to turn price movements into opportunities. Justin Sun, Wintermute, and DWF-Labs weigh in on the buyer side, while a group of traders are taking positions against the altcoin.
Traders sell altcoins amid hack news
According to reports, Curve’s CRV token is facing serious liquidation following Monday’s hacking attempt. CRV price dropped below $0.50 today, returning to November 2022-FTX levels. It has lost 30% of its value since Sunday’s hack.
According to data source Velo, the amount of open interest in CRV-linked perpetual futures doubled to $106 million with deep negative funding rates. This is usually a sign that investors may have taken a short position or positioned for a price drop.
CRV price is going through a tough time due to liquidation risk and people turning to short positions. This situation directly affects the altcoin price. cryptocoin.comAs we reported, the Tron founder stepped in today to avoid the risk of compensation.
Shorters worried about co-founder Egorov’s collateralized assets
Curve’s several stable pools using Vyper were exploited on July 30. The hack attempt brought the CRV price to support levels that could lead to serious liquidation. One of them was about founder Michael Egorov. Delphi Digital explains the concerns about its founder Egorov’s positions:
Yesterday, several CurveFinance pools were exploited. Curve founder Michael Egorov has a loan of ~$100 million, approximately 47% of which is currently backed by 427.5 million CRVs. Curve’s health is in jeopardy as CRV has dropped 10% in the last 24 hours.
1/ Yesterday, several @CurveFinance pools were exploited.
Curve founder, Michael Egorov, currently has a ~$100M loan backed by 427.5m $CRV (about 47% of the entire CRV circulating supply).
With $CRV down 10% over the past 24 hours, the health of Curve is in jeopardy. 🧵⬇️ pic.twitter.com/EKpQCkDs6W
— Delphi Digital (@Delphi_Digital) August 1, 2023
According to Delphi, Egorov borrowed 63.2 million USDT from Aave against 305 million CRV collateral. His position will be liquidated if the CRV/USDT pair drops to $0.37. Egorov also served as collateral backing the 15.8 million FRAX loan.
