• Curve Finance’s native token CRV recently experienced an exploit that resulted in a 33% price crash.
• The malicious actors behind the exploit reportedly deposited 400 ETH and withdrew tokens worth millions of dollars.
• Despite the major losses, CRV witnessed some recovery due to investors taking advantage of discounted prices.

CRV’s Recent Exploit

Curve Finance was recently the victim of an exploit that sent ripples of fear across its entire ecosystem. Kaiko Data analyst Riyad Carey broke down the series of events leading up to the crash. According to Carey, 400 ETH was reportedly deposited and tokens worth millions were withdrawn by malicious actors. This caused a steep selloff in CRV’s price which dropped by as much as 33%.

Low Liquidity Contributes to Price Drop

The limited liquidity on Curve Finance network at the time didn’t help either as it contributed to the sharp decline in price. Investors were spoofed into selling their tokens resulting in a further dip in value and sending it into oversold territory. However, this also provided an opportunity for savvy traders to buy up discounted CRV tokens supporting its rebound from rock bottom prices.

Recovery Supported By High Open Interest

The recovery has been supported by a surge in open interest according to data analysis from Carey. At press time, CRV exchanged hands at $0 62 representing 24% bounce back from its lowest point within seven days prior. Money Flow Index (MFI) confirmed that there is increasing demand for CRV with buying pressure likely coming from large holders or whales who saw it as a good bargain following the crash caused by the recent exploit.

Whale Demand Remains Low

However, despite all these positive indicators, whale demand remains low indicating investor confidence is still shaky following the attack on Curve Finance’s network and subsequent losses incurred due to it. It is difficult to predict how long it will take before things get back to normal but one thing is clear; investors need more proof that Curve Finance can protect itself against future exploits if they are going to put their trust back into CRV again any time soon.

Conclusion

Curve Finance’s native token recently experienced an exploit resulting in significant losses but has since recovered somewhat thanks to increased open interest and savvy investors taking advantage of discounted prices at rock bottom levels. However, whale demand remains low suggesting investor confidence is still shaken up after what happened which could have implications for its future performance depending on how long it takes for them regain their trust back into Curve Finance and its native token CRV again

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