Curve Finance Hack – Explained in Simple Terms

PLUS, Bitcoin Volatility at 3-year Low

Hey – this is Big Joe Crypto.

I'm here to break down crypto, line by line – like a programmer breaks down computer code.

Speaking of which, some crypto hackers used some stealth lines of code to steal a cool $50 Million – including a token I invested in! 👀 

Let’s dig into what happened.

Computer screen typing animated meme

Here's what's happening today:

  • 🚪 Curve Finance hack sees $50 million go out the door

  • 📉 Bitcoin volatility hits 3 year low

  • 🎉 Ethereum (ETH) celebrates its 8th birthday

Got big crypto questions?

💡 Just so you know, we include affiliate links into our content from time to time. If you decide to purchase anything from our partners using our links, we get a little crypto-crumble 🍪 – aka, “we get compensated”. It’s our way of keeping the lights on and the content high-quality at Big Joe Crypto. Learn more.

BIG MOVERS: THE CHARTS

Crypto Fear and Greed Index for July 31, 2023 - Markt Mood Meter

*Prices as of 2:15 PM EST. BIG Movers based on top 300 cryptos by market cap.

TODAY’S BIG STORY

Curve Finance hack – Here’s what happened

Man in computer room cartoon shocked

Over the weekend, I was sipping on my morning chai tea like most mornings happily perusing the latest crypto news – when I discovered that Curve (CRV), one of the tokens in my expansive crypto portfolio, got a swift punch in the gut. 👊 

Hackers had exploited a weakness in the system, making away with a cool $50 million. Ouch!

Here’s what happened.

The big hack…

In case you’re scratching your head, let me quickly explain what went down.

Curve uses something called liquidity pools.

In the simplest terms, these pools are a stash of tokens that help keep the crypto market fluid and working smoothly.

Think of it like your favorite coffee shop. They have a bunch of coffee beans (tokens) that they use to make a tasty brew (crypto market) for their customers.

Without the beans, there's no coffee. Without the tokens, there's no market.

Unfortunately, it turns out there was a bug in the code, or 'programming language,' that the pools used. The hackers, like caffeine addicts needing their fix, found a loophole and took advantage of it.

Big Risk for Big Opportunities?

It’s no secret that the world of crypto can be as unpredictable as the plot of a telenovela.

That’s why it’s essential to have a safety net.

Enter the RACI system (Rational Asymmetric Crypto Investing), my personal investment strategy for the crypto market.

I use RACI to spread my investments across a variety of coins and tokens, some of which are riskier than others, like our dear friend, CRV.

In fact, do you wanna know the current percentage value of CRV tokens in my crypto portfolio?

*Drum roll please* 🥁 

A whopping 0.25% (yes, zero point 2-5). That’s way less than 1%.

Crypto portfolio CRV DAO Token

My Curve (CRV) tokens make up 0.25% of my ENTIRE portfolio. Cheers to risk management 🍻 

On top of that, you can see that my CRV position is still up over 77% (in the bear market no less).

One of the reasons for that is I sold most of my CRV during the 2021 bull market (prices were rocketing so I decided to “take some money off the table”.)

The real point here though, is that with a position of less than 1% the effects of this hack feel like a strand of hair dropping on my head – virtually nothing.

And that leads me to my next point.

The power of the diversified portfolio ⚡️ 

But with a diversified portfolio and a cap on how much I put into riskier assets, the impact of any individual token taking a tumble isn't as cataclysmic.

It's like having a favorite coffee bean, but still trying others, so if one harvest fails, you still have plenty of options for your morning cup of joe.

In other words, my CRV position isn’t enough to ruin me, but it’s still enough to make a meaningful change in my life if the market goes up the way I expect in the next year.

🤔 Why you should care…

One of the projects behind a token I own, CRV DAO Token, got hacked, but I didn’t lose a wink of sleep last night.

And you might be thinking, "Why should I care so much about Curve getting hacked?"

Well, this is a crypto cautionary tale.

It reminds us that while crypto can offer huge rewards, there are ALWAYS risks involved too.

That's why having a diversified portfolio is so important.

Just remember, no matter how tempting that bean, or token, might look, always make sure to hedge your bets.

Just like you wouldn’t drink only one type of coffee for the rest of your life, don’t put all your crypto eggs in one basket either.

Stay smart, and stay diversified.

Check out my personal crypto portfolio if you want some ideas.

More Big News…

Bitcoin Volatility is at 3-year Low 📉 

Simpsons animation of chart crash

The big slump…

While crypto markets are notorious for their unpredictable (and raging) volatility, this year has been an anomaly.

Why?

Bitcoin's volatility has hit a three-year low, showing a steady trend downward.

The world's largest cryptocurrency, which has typically swung wildly in price, has seen a steady climb from its low of $15,500 late last year, now around the $30,000 mark.

This pattern isn't just seen in Bitcoin - volatility is falling across all cryptocurrencies, even Ether which has historically been more volatile than Bitcoin.

Bitcoin and Ethereum volatility chart 2023

🤔 Why you should care

Why You Should Care:

Periods like typically do one of a few things to people...

1/ They're so boring, that most people just sit on the sidelines.

2/ They eventually lead to insane levels of volatility, causing people to buy in at the wrong time or sell at the wrong time.

That's why I cover things like when the best time to buy crypto is.

Knowing when to buy, hold, or sell can make the difference between a profitable investment or a costly mistake.

So, while we're in this low volatility phase, consider this your chance to strategize, educate yourself, and prepare for the next big wave in the crypto market.

Whether that wave takes us to thrilling heights or plunges us into deeper waters, being prepared means you can profit either way.

Stay tuned to this space as I share what I’m doing during this period, including what I plan to buy, sell, and hold.

MORE BIG HEADLINES

BIG LAUGHS! TODAY’S MEMES 😂 🤣

LOL! Don’t let the boring crypto markets fool you though. We could be on the cusp of something big.

Pablo Escobar in difference scenes thinking about Bitcoin

Yes, the BTC Price is jumping around like a Kangaroo, that’s for sure. 🦘 

Comparison of bull market, bear market, and kangaroo market

What do you think of today's email?

Login or Subscribe to participate in polls.

DISCLAIMER: Nothing in this communication, or from Big Joe Crypto and associated bigjoecrypto.com domains is financial advice. It’s all educational and is not investment advice, a recommendation or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful, stay rational, and do your own research (DYOR).