What happened when CRV plummeted 35%? Can you buy the dip?
The founder of CRV mortgaged CRV worth US$141 million on the lending platform, and then lent US$95.7 million of stablecoins to buy a villa and various expenses.
Because the collapse of CRV triggered the liquidation price, the lending platform sold all the coins pledged by the founder of CRV, so it plummeted.
"What is loan settlement"?
Lao Wang pawned a Rolex worth 100 US dollars to the pawnshop (loan platform), and the pawnshop (loan platform) gave Lao Wang 50 US dollars. The two parties signed a contract. If the Rolex fell to 80 US dollars, the pawnshop (loan platform) would directly pay 80 US dollars. I sold Lao Wang’s Rolex with US dollars, and Lao Wang didn’t have to return the 50 US dollars.
"Can I buy the dip?"
The main reason why CRV plummeted this time was because the founder’s tokens were liquidated. It was not a mechanical problem and it would not spiral downward.
The project itself is quite good. It is an important infrastructure of the ETH ecosystem. The market value of 300 million is not very high, so it can be a bargain.
