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In the wake of a massive exploit, the price of the Curve (CRV) token has declined drastically, recording double-digit losses in the last day. This has led to what some would call an opportunity to buy cheap coins and Matrixport and Bitdeer founder Jihan Wu is one of the believers.
A Good Time To Buy Curve (CRV)?
Jihan Wu recently tweeted that he bought the CRV dip. According to Wu, he remains a strong believer in the token because of its future applications.
Wu’s tweet comes at a time when Decentralized Finance (DeFi) platform Curve DAO’s native token CRV has been down by more than 12% in the last 24 hours. This dip came following an exploit in some of Curve’s stablecoin pools.
The exploit on the protocol reportedly occurred due to a bug in the Vyper programming language, which is used to power part of the DEX’s ecosystem.
Despite this occurrence, Wu believes that this is a good time to invest in the CRV tokens as these tokens will play a significant role in the coming RWA (Real World Assets) wave in reference to the tokenization of physical assets.
“In the coming RWA wave, $crv is one of the most important infrastructures. I have BTFD. NFA,” the founder said in the tweet.
Without a doubt, the tokenized industry is growing and boasts immense potential. Last year, a World Economic Forum survey projected the tokenized assets industry to account for almost 10% of the global GDP by 2027.
The tokenization of real-world assets will involve bringing physical assets like houses, arts, and precious metals on-chain. This will undoubtedly provide easier access and promote fractional ownership of these assets.
CRV price declines over 14% following exploit | Source: CRVUSD on Tradingview.com
As Wu has highlighted, DeFi protocols like Curve and tokens like CRV will play an integral role in facilitating transactions involving the transfer and trade of these tokenized assets.
DeFi Security Remains A Stumbling Block
The several exploits on DeFi protocols continue to remain a huge problem in the DeFi ecosystem and something which many consider a stumbling block to the wider adoption of DEXs over CEXs by many crypto users. Recently, Curve Finance’s Omnipool platform, Conic Finance, suffered an exploit that resulted in the hacker stealing over $3 million in Ether.
A report from Web3 portfolio app De.Fi found that over $204 million was lost to hacks and exploits in the DeFi ecosystem in Q2 of 2023 alone. The number of incidents (117) in Q2 this year translated to an “almost 7 times” increase in comparison with Q2 of 2022 (17 incidents).
According to the report, over $665 million have been lost to such exploits this year. And these breaches further highlight the need for DeFi protocols to implement enhanced security mechanisms on their platforms.