Crypto
Curve Founder’s Wallet Repays $13M to Aave Amid CRV Token Decline
Curve Founder’s Wallet Repays $13M to Aave Amid CRV Token Decline
A Curve founder’s wallet has repaid $13 million to Aave after borrowing the funds using Curve’s CRV token as collateral. The transaction came amid a significant decline in the CRV token’s value.
The anonymous founder, who is believed to be involved in developing Curve’s lending protocol, borrowed around $2.8 million worth of Ethereum on June 11 and quickly converted the funds into CRV tokens, using them as collateral for another $10.2 million in Ethereum loans.
However, the value of the CRV token fell dramatically just a day later, which triggered a “margin call” and forced the founder to repay the entire $13 million loan. Aave confirmed the repayment on Twitter, adding that the move helped to “prevent a larger-scale liquidation event”.
Curve founder denies any foul play or ill-intent
Whilst some speculated that the move could have been a deliberate attempt to manipulate the CRV token’s value, Curve founder Michael Egorov denied any malicious intent, stating that the loan was made for “valid reasons”.
Speaking to CoinDesk, Egorov said: “We didn’t intend to influence the token’s price in any way and we were acting strictly within the confines of the system…The cryptosphere is still small, and we know very well that, ultimately, any attempt to manipulate the price harms all participants. So, we have no interest in such practices and will never do it.”
However, the incident has raised concerns about the risks associated with using cryptos as collateral for loans, particularly as volatility in the crypto markets continues to plague investors.
Effects of repayment on the CRV token’s price
The repayment of the $13 million loan appears to have had a short-term positive impact on the CRV token’s price. Following the repayment, the token’s value increased by more than 20% to above $1.60 on June 14th, though it has since fallen back to around $1.30.
Whilst accusations of market manipulation may have been dispelled, the incident still highlights the potential risks associated with investing in the volatile crypto market. With the value of cryptocurrencies still largely unpredictable, investors must navigate a complex and often risky landscape in order to reap the potential rewards.
BNB price has noted significant gains over the past few days, surging past the psychological resistance of $300. The native cryptocurrency of the Binance Exchange has surpassed Solana to regain its position as the fourth-largest cryptocurrency by market cap. The digital currency has been rallying lately with a 7-day profit of more than 15%. Additionally, BNB has clocked a phenomenal gain of 38% in the month to date.
Binance Coin Outlook
BNB price has been on a strong bull run for the past week, breaking out of its consolidation. Even so, the asset has experienced a correction in its uptrend over the past 24 hours but remains above the crucial level of $300. BNB’s total market cap has decreased by 4% over the past day to $48 billion, while the total volume of the asset traded over the same period dipped by about 15%.
Over the past year, Binance Coin has had to cope with Fear, Uncertainty, and Doubt (FUD) on the back of the regulatory troubles of its underlying exchange. Earlier, the BNB price touched a low of $223.50, a few days after its former CEO, Changpeng Zhao, pleaded guilty to money laundering charges. However, the cryptocurrency has managed to rebound 46% in value since then.
The recent price rally has been associated with various positive developments in the Binance ecosystem, including the Introduction of the Isolated Margin Auto-Transfer Mode. This feature enables…
Solana price performance in recent times has been remarkable, surpassing Ripple and Binance Coin to become the fourth-largest cryptocurrency by market cap. The SOL price breached the critical level of $100 for the first time since April 2022 over the weekend to imbue optimism among investors. However, the altcoin has corrected by 7%, suggesting that the market is overheated. At the time of writing, the ‘Ethereum killer’ was trading slightly lower at $111.60.
SOL Outlook
Solana price has made a significant recovery over the past few weeks, climbing above the psychological level of $100. The altcoin has been one of the best-performing assets this year, extending its year-to-date gains to more than 1,025%, with more gains recorded in the past month alone. However, even with such growth, analysts have noted that Solana has a bleak chance of topping its ATH of $260.
The reason behind this is the increase in supply relative to its value. In November 2021, when the Solana price hit its all-time high of $260, its total market capitalization was around $78 billion. Despite the value of the crypto asset being less than half of what it was at the top, its market cap is currently hovering near $50 billion.
This has been brought about by the increase in the Solana supply by more than 100 million SOL over the past two years. According to some analysts, for the altcoin to retest $260, its…
Solana price has noted significant gains over the past few weeks, climbing to its highest level since April 2022. The ‘Ethereum Killer’ almost topped the crucial level of $100 on Friday, before pulling back slightly. The asset’s recent surge has catapulted Solana’s total market cap to $39.6 billion, ranking 5th after and above BNB and XRP, respectively. Solana has jumped by more than 22% in the past week and more than 80% in the month to date. At the time of writing, SOL price was trading 0.90% lower at $93.10.
Catalysts Behind SOL’s Rally
Solana price has been on a strong bull run over the past few days, rocketing to its highest level in 20 months as the network benefits from the substantial activity and strong interest in memecoins. The SOL token, the native digital asset of the high-performance blockchain platform Solana, has shown some serious strength over the past few weeks, outperforming all the altcoins in the market.
The recent surge in the Solana price has been linked to heightened on-chain activities on the Solana blockchain. Notably, the ongoing hype for the blockchain’s speedy transactions, cheap fees, and a lottery of meme coin issuances has buoyed SOL’s on-chain activity. Metrics have revealed that Solana has been the strongest draw among on-chain traders, with trading volumes and network fees outperforming Ethereum- the largest altcoin by market cap.
Cited figures provided by DeFi aggregator DeFiLlama…
-
Blogs6 years agoBitcoin Cash (BCH) and Ripple (XRP) Headed to Expansion with Revolut
-
Blogs6 years agoAnother Bank Joins Ripple! The first ever bank in Oman to be a part of RippleNet
-
Blogs6 years agoStandard Chartered Plans on Extending the Use of Ripple (XRP) Network
-
Blogs6 years agoElectroneum (ETN) New Mining App Set For Mass Adoption
-
Don't Miss6 years agoRipple’s five new partnerships are mouthwatering
-
Blogs6 years agoCryptocurrency is paving new avenues for content creators to explore
-
Blogs6 years agoEthereum Classic (ETC) Is Aiming To Align With Ethereum (ETH)
-
Blogs6 years agoLitecoin (LTC) Becomes Compatible with Blocknet while Getting Listed on Gemini Exchange
