CRV TVL rises 40% to $2.34 billion as Curve team offers 10% bounty against 62 million hack without prosecution
- CRV TVL is up 40% to $2.33 billion after dropping 49% from $3.27 billion to $1.68b during the hack.
- With a 10% deal on the table, the offer stands until August 6, after which further actions will ensue, including public involvement.
- Curve DAO token is up 5% in the last 24 hours, but trading volume continues to decline, down 55% in the same period.
CRV total value locked (TVL) is rising after the recent hack that stole approximately $62 million in funds. The incident has left the founder, Michael Egorov, at risk of liquidation in a $100m+ position. Notably, this could trigger a substantial implosion in decentralized finance (DeFi).
Curve Finance, a key pillar of the DeFi ecosystem, was recently hacked for ~$62m.
— Miles Deutscher (@milesdeutscher) August 1, 2023
The founder Michael Egorov is at risk of liquidation on a $100m+ position.
It could trigger a substantial DeFi implosion.
: EVERYTHING you need to know about the $CRV situation (MEGA THREAD).
CRV TVL rises as Curve Network works out a compromise
CRV TVL is up 48% to $2.33 billion after dropping 50% from $3.27 billion to $1.57 billion during the hack July 31 hack.
Curve Finance TVL
As reported, the Curve ecosystem has been struggling since the exploit, with its CEO Michael Egorov facing liquidation because of his $168 million holdings in CRV holdings. With his holdings constituting nearly 34% of the market capitalization of CRV token, the CEO was able to offer Over The Counter (OTC) deals and partnerships within the ecosystem, hence his current situation.
Curve DAO token (CRV) is up almost 5% at the time of writing, despite the falling trading volume over the last 24 hours. The token seems to have support at around $0.567, with a lot of uncollected liquidity underneath. As such, CRV price could drop further before a confirmed uptrend.
CRV/USDT 1-day chart
The Relative Strength Index (RSI) at 34 and the Awesome Oscillators (AO) histograms in the negative are concerning, suggesting bears have an advantage in the CRV market.
Curve team agrees to a compromise
To salvage the situation, the Curve team has agreed to a compromise, proposing a 10% bounty to the hacker to return the funds in exchange for no prosecution. The deal is only open until August 6 at 0800 UTC.
Message from Curve.fi
The move is part of the team’s plans to save its CEO from liquidation while at the same time relieving the CRV price from the stress that could worsen further as large volumes of traders look to short the token.
Based on the announcement, the Curve team wants the hackers to return 90% of the loot, translating to about $55.8 million. For this much, the team is willing to drop the case and let the exploiter keep the remaining 10%, approximately $6.2 million.
The bad actors failing to respond within the allocated timeframe could see the team involve the public in the bounty, extending the same 10% to anyone who can identify the exploiter.
Bounties have become a common bargaining chip in the crypto market, considering the decentralized nature of crypto, making it hard to track stolen crypto and even harder to recover the loot. For a win-win situation, victims tend to agree to a compromise, such that the exploiter returns the bulk of the exploit for a certain percentage of the funds and the promise of no pursuit or prosecution, leaving them free to use the stolen funds.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
