CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

Curve DAO Token jumps more than 51% – what‘s behind the CRV price rise?

By Capital.com Research Team

Edited by Charlie Mellor

11:01, 23 November 2022

Representation of the curve dao token (CRV)
Curve dao token (CRV) has been on a rollercoaster – Photo: Shutterstock

Curve dao token (CRV) – the native crypto of the Curve decentralised exchange (DEX) that only trades stablecoins and wrapped assets – has seen a massive amount of volatility over the last few days. 

CRV jumped more than 51% at one point on Wednesday after seeing a major dip the previous day – the result of an apparent short attack, reportedly carried out on the decentralised finance (DeFi) Aave protocol.

What is your sentiment on CRV/USD?

0.8690
Bullish
or
Bearish
Vote to see Traders sentiment!

Curve dao token (CRV) to US dollar

So what happened with CRV?

On-chain analysts have detailed the attack over the last couple of days.

On 20 November 2022, Twitter user DefiMoon accused Avraham Eisenberg – a trader reported to have been involved in October’s Mango Markets attack – of having a $17m CRV short position.  

BTC/USD

96,151.00 Price
+1.040% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 50.00

DOGE/USD

0.32 Price
+1.330% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.0015868

XRP/USD

2.22 Price
+0.310% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.01106

ETH/USD

3,342.88 Price
+1.900% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 1.75

Two days later, Lookonchain tweeted that another shorter had borrowed 20 million CRV ($9.9M) from Aave, before sending half of it to OKX exchange. Lookonchain said: 

“He has lent 37M CRV from Aave in the past seven days. The price of CRV dropped from $0.625 to $0.464, a decrease of about 26%. Now he is dumping the 20 million CRV he borrowed!”

As of 23 November, Lookonchain then detailed the tug of war between CRV short and long traders the day before. He said on Twitter

“CRV war was played out on Aave yesterday and ended with the longer defeating the shorter. Ponzishorter.eth shorted CRV by borrowing and dumping CRV. CRV guardians bought CRV, soaring the price to $0.72, and liquidating all collateral of ponzishorter.eth.”

At the time of writing, CRV was trading at $0.62, up 51% in the past 24 hours.

Markets in this article

CRV/USD
CRV/USD
0.8690 USD
0.0411 +5.000%

Related topics

Rate this article

Related reading

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 660,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading