Curve (CRV), a popular decentralized exchange and automated market maker (AMM) protocol, has experienced a dip in its token price, falling below the $0.40 mark. This drop occurred as the founder’s tokens of Curve were moved to the prominent cryptocurrency exchange, Binance. The movement of these tokens to a major exchange has likely sparked a sell-off, leading to the decline in CRV’s value. As a result, traders and investors are closely monitoring the situation to determine the potential impact on the future performance of Curve’s token.
Curve DAO Tokens Experience Price Drop as Founder’s OTC Transfers Reach Binance
Investors Facing Losses as CRV Tokens Dip Below $0.40
The price of Curve DAO (CRV) tokens briefly fell below $0.40 on Wednesday as over-the-counter (OTC) transfers made by the DeFi project’s founder, Michael Egorov, were later transferred to Binance.
- Blockchain security firm PeckShield reported that one of Egorov’s counterparties from last month transferred 609,000 CRV tokens to Binance on Wednesday. Analysts typically interpret such transfers to exchanges as an intention to sell.
- Egorov sold 2.5 million CRV tokens for 1 million USDT last month in collaboration with the counterparty, aiming to mitigate the liquidation risks associated with his $100 million DeFi debt burden. Other notable investors involved in the purchase were Tron founder Justin Sun, who bought 5 million CRV tokens from Egorov.
- Analytics platform Lookonchain observed that investors who purchased CRV tokens from Egorov at $0.40 are currently facing losses. At 3:30 a.m. ET on Wednesday, CRV was trading for only $0.38.
- However, the counterparty appears to have returned their 609,000 CRV tokens from Binance just a few hours later, as indicated by on-chain data. Since then, the token’s price has recovered to $0.404.
- Egorov successfully sold $46 million worth of CRV tokens to investors in early August. The list of investors includes Justin Sun, Wintermute, a trading firm, and Jeffrey Huang, an NFT investor.
- The largest counterparty to Egorov seems to be an anonymous OTC entity that purchased 17.5 million CRV tokens from the founder.
Title 1: Curve DAO Tokens Experience Price Drop as Founder’s OTC Transfers Reach Binance
Title 2: Investors Facing Losses as CRV Tokens Dip Below $0.40
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