CRV falls below the key level of $0.4! A decrease of over 30% in 30 days.

Ritu13

DeFi protocol Curve, which was trading at $0.4 CRV in August, a price that attracted community interest, has not only reached that threshold but has also fallen below it. Will the CRV liquidation crisis continue?

Recalling the Curve incident: Robbing Peter to pay Paul.

Curve experienced a hacking incident at the end of July, and the liquidity crisis of Curve founder Michael Egorov began to brew in early August. In order to avoid a market collapse, many prominent figures in the crypto space came to the rescue.

Michael Egorov was heavily indebted across various DeFi protocols at the time, with a debt of up to $110 million and collateral of over 427.5 million CRV tokens, accounting for 47% of the circulating supply. He had to repay his debts to avoid liquidation.

Through actions like seeking help from Cream and Binance, as well as OTC transactions, Michael Egorov temporarily alleviated the liquidation risk. However, this was akin to robbing Peter to pay Paul. Will the CRV liquidation crisis persist?

He conducted OTC transactions, selling a significant amount of CRV at a price of $0.4. However, it was later revealed that the locking mechanism for selling tokens was not mandatory but based on ethics. Now, CRV has officially fallen below $0.4.

In fact, CRV had already fallen below the lowest point it reached during the hacker incident and the liquidity crisis, which was $0.5679, since mid-August. As of the time of writing, it has fallen below $0.39.

According to CoinMarketCap and TradingView data, CRV has fallen by -3.26% in the last 24 hours, -12.32% in the last 7 days, and the 30-day decline has reached 30.24%. Previously, it was reported that Huobi founder Du Jun strongly supported Curve, considering it a genuinely innovative project and a foundational infrastructure for the industry. Now, the price he was interested in has been met, and it's even more favorable.