Crypto Market Unnerved By CRV Token Fall
Curve Finance, a decentralized cryptocurrency exchange, experienced a 30% drop in its native token, causing a decrease in sentiment towards digital assets. The hack, which occurred over the weekend, led to significant declines in funds deposited on the platform and the price of the CRV token, which facilitates transactions.
This drop has put over $100 million worth of loans of Curve Finance founder Michael Egorov at risk of liquidation. Curve Finance, like other decentralized projects, uses blockchain-based smart contracts instead of middlemen. Decentralized autonomous organizations (DAOs) run DeFi projects, with members using their tokens to vote on key changes. While advocates praise the transparency of DeFi’s design, the incident highlights a flaw in DeFi’s decision-making process, which may not always lead to the right outcomes.
(With inputs from Shikha Singh)
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