- Lookonchain tweets about a scandal of someone borrowing 20M CRV.
- Callan elaborates on the strategy the fraudster used for the scandal.
- CRV’s 200-day MA looks bearish, but if the bulls push, CRV could gain ground.
Lookonchain, a web3 data analysis tool provider, tweeted that someone borrowed 20 million CRV worth $9.9 million from Aave and transferred 10 million CRV worth $4.9 million to OKEx, a Seychelles-based cryptocurrency exchange.
A huge $CRV shorter borrowed 20M $CRV($9.9M) from #Aave and transferred 10M $CRV($4.9M) to #OKEx.He has lent 37M $CRV from #Aave in the past 7 days.The price of $CRV dropped from $0.625 to $0.464, a decrease of about 26%.Now he is dumping the 20M $CRV he borrowed! pic.twitter.com/sSiMqEE5C3— Lookonchain (@lookonchain) November 22, 2022
Furthermore, the Lookonchain reported that the individual was manipulating the price of CRV by buying a large quantity and dumping it in the market. Elaborating on the buyer’s strategy, Callan Sarre, Co-founder of crypto tax firm Cryptocate, commented on Lookonchain’s post.
In the comment section, Callan stated:
Something like:1. User borrows 20M CRV @ $0.6252. User sells CRV and makes the market dump.3. User buys back discounted CRV to pay back the loan @ 0.4644. User profits the difference between the original loan value and the purchase price of the discounted CRV.
Meanwhile, the price of CRV, which was moving sideways, came tumbling down. CRV which was trading at $0.53, dropped to $0.40, an unprecedented low. The Support 1 $0.48 denoted in the chart became a Resistance level for CRV after it fell to the “Support” Level.
However, CRV was able to recover the lost momentum as its price jumped back into Support 1 at $0.48. The bulls will need to dominate to get CRV back to its original position of trading before the fall.
CRV/TetherUS 1h Binance on TradingView
Nonetheless, the 200-day MA is sloping down, indicating a bearish view. However, if the bulls have the strength to push the bears and push the prices up, then the prices may increase.
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