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Crypto Sector Ruffled by Slump in Curve Finance Exchange’s Token - BLOOMBERG
BY , Bloomberg News
, Bloomberg
(Bloomberg) -- The native token of Curve Finance, one of the cryptocurrency sector’s top decentralized exchanges, has tumbled to an all-time low.
CRV slid as much as 38.2% to about 22 US cents on Thursday before paring some of the drop to trade at 26 cents as of 1:55 p.m. in Singapore, according to data compiled by Bloomberg. That is the lowest price for the token on record, CoinGecko data show.
Curve Finance is one of the largest liquidity providers in decentralized finance — or DeFi — particularly for stablecoins, a type of token that is designed to hold a stable value. DeFi projects rely on different kinds of automated software built on top of blockchain technology to provide various financial services.
The price slump has again put Curve founder Michael Egorov — who has taken out millions of dollars in loans using the CRV token as collateral — at risk of liquidations. Egorov last year pledged to reduce his borrowing after a July hack triggered sharp declines in both the amount of funds deposited on the Curve platform and the price of CRV.
Data compiled by Spot On Chain suggests Egorov still owed $27 million across three platforms as of June 13, backed by $37 million of CRV as collateral. He did not immediately respond to a request for comment from Bloomberg News.
