Within the wake of a large exploit, the worth of the Curve (CRV) token has declined drastically, recording double-digit losses within the final day. This has led to what some would name a chance to purchase low-cost cash and Matrixport and Bitdeer founder Jihan Wu is without doubt one of the believers.
A Good Time To Purchase Curve (CRV)?
Jihan Wu not too long ago tweeted that he purchased the CRV dip. In keeping with Wu, he stays a robust believer within the token due to its future functions.
Wu’s tweet comes at a time when Decentralized Finance (DeFi) platform Curve DAO’s native token CRV has been down by greater than 12% within the final 24 hours. This dip got here following an exploit in a few of Curve’s stablecoin swimming pools.
The exploit on the protocol reportedly occurred as a consequence of a bug within the Vyper programming language, which is used to energy a part of the DEX’s ecosystem.
Regardless of this prevalence, Wu believes that it is a good time to put money into the CRV tokens as these tokens will play a big position within the coming RWA (Actual World Belongings) wave in reference to the tokenization of bodily belongings.
“Within the coming RWA wave, $crv is without doubt one of the most necessary infrastructures. I’ve BTFD. NFA,” the founder stated within the tweet.
Indubitably, the tokenized trade is rising and boasts immense potential. Final yr, a World Financial Discussion board survey projected the tokenized belongings trade to account for nearly 10% of the worldwide GDP by 2027.
The tokenization of real-world belongings will contain bringing bodily belongings like homes, arts, and valuable metals on-chain. It will undoubtedly present simpler entry and promote fractional possession of those belongings.
CRV value declines over 14% following exploit | Supply: CRVUSD on Tradingview.com
As Wu has highlighted, DeFi protocols like Curve and tokens like CRV will play an integral position in facilitating transactions involving the switch and commerce of those tokenized belongings.
DeFi Safety Stays A Stumbling Block
The a number of exploits on DeFi protocols proceed to stay an enormous drawback within the DeFi ecosystem and one thing which many think about a stumbling block to the broader adoption of DEXs over CEXs by many crypto customers. Just lately, Curve Finance’s Omnipool platform, Conic Finance, suffered an exploit that resulted within the hacker stealing over $3 million in Ether.
A report from Web3 portfolio app De.Fi discovered that over $204 million was misplaced to hacks and exploits within the DeFi ecosystem in Q2 of 2023 alone. The variety of incidents (117) in Q2 this yr translated to an “virtually 7 occasions” enhance compared with Q2 of 2022 (17 incidents).
In keeping with the report, over $665 million have been misplaced to such exploits this yr. And these breaches additional spotlight the necessity for DeFi protocols to implement enhanced safety mechanisms on their platforms.
Featured picture from The Coin Republic, chart from Tradingview.com