Curve Founder Moves Over 23 Million CRV To Binance, Is It Time To Take Profit?
28 Dezember 2023 - 4:00AM
NEWSBTC
Curve Finance founder Michael Erogov has moved over 23
million CRV, the native governance token of the Curve DAO, to
Binance, the world’s leading cryptocurrency exchange, over the last
five days, The Data Nerd, on December 27, shows. The founder moved
2.5 million CRV on December 27. This transfer may ruffle investors,
raising concerns because it could indicate that Erogov is likely
liquidating. CRV Is Firm, Up 60% In The Last 3 Months While the
founder’s sale of CRV could put downward pressure, the token
remains firm and is up roughly 60% from September 2023 lows. The
token trades above $0.60 at spot rates, rejecting selling pressure
as the daily chart shows. Related Reading: Polygon Breaks Out Of
Symmetrical Triangle, Analyst Puts This Target If bulls press on,
it could break above $0.72 to record new 2023 highs. The token is
trending higher, rejecting bear attempts amid improving sentiment
across the crypto scene. Although Erogov is selling CRV, the market
seems to interpret the move as bullish. The spectacular revival of
CRV is net bullish for the protocol, suggesting that investors are
still confident despite headwinds in early H2 2023 when several
Curve pools were exploited due to a Vyper compiler issue.
Curve Founder Sold CRV To Prevent Liquidation Of DeFi Loans
Following the hack in late July 2023, Erogov was forced to
liquidate a large chunk to prevent liquidation. On its part, the
hack led to over $52 million in crypto assets, including 7.19
million worth of CRV, lost. In the aftermath of the hack, prices
crashed. At the time of this hack, Erogov had over $100 million in
DeFi loans backed by 427.5 million CRV as collateral. As CRV prices
fell, the health of Egorov’s loans fell in tandem. If the
value of Egorov’s CRV collateral were to fall further, it could
face liquidation. This meant that all protocols from where the
founder had borrowed using CRV as collateral would have been forced
to sell the token at spot rates to repay the loan. As an automated
intervention, the event would have likely caused a cascade, even
impacting ordinary holders using CRV as collateral. Related
Reading: Crypto Analyst Predicts Bitcoin To Reach $130,000, Here’s
When To avoid this and as a form of intervention, Tron founder
Justin Sun and multiple other parties, including Jeffrey Huang,
made deals to buy CRV from the Curve founder, preventing this
liquidation from happening. According to DeBank on
December 27, Erogov’s crypto portfolio was north of $136 million.
Out of this, the founder owns over $38.9 million of CRV. Feature
image from Canva, chart from TradingView
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