The founder of Curve Finance, Michael Egorov, has just sold off 72 Million CRV Tokens through an Over-The-Counter (OTC) transaction. News has it that Egorov made the transaction to 15 different entities. According to Lookonchain, an on-chain analytical company, said 72 million CRV tokens were worth $28 million. Other analytical companies like Dune Analytics and Spotonchain also confirmed this activity.
This event triggered a selling spree, which also incidentally called into CRV token’s most challenging moments. As of press time, the value of CRV reduced by 22% in the past few months, triggered by a security breach of the company’s multiple factory pools. As of the time of writing, CRV trades for $ 0.7216963.
Vishal Chawla, a freelance industry analyst monitoring the situation say that Egorov’s intention of selling off as many assets as possible is traced to its idea to initiate a proactive measure that can reduce his DeFi debt. They say this move will help prevent a potential risk of liquidation often linked to his numerous loan positions.
A statement by Lookonchain, while announcing this development, said that Egorov had sold this token for $28.8 million at a $0.40 market price. Some notable key players also took the part of Egorov, with millions of CRV tokens in their possession.
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DCFGod, Machi Big Brother, Others Make Up Key Counterparts
Companies and individuals like DCFGod, Jeffrey Huang, aka “Machi Big Brother,” Justin Sun, and Tron founder made up the list of Egorov counterparts. Available data said that DCFGod bought a whole 4.25 million CRV tokens CRV tokens, Justin Sun bought 5 million worth17.5 million CRV tokens.
DCFGod was later said to have moved 3.75 million CRV tokens to Jeffrey Huang, also known as “Machi Big Brother,” and an NFT owner. The biggest buyer on the list is an anonymous wallet which was said to have acquired 17.5 million CRV tokens.
Meanwhile, Jun Du, the Huobi co-founder, has confirmed the acquisition of over 10 million CRV tokens worth $4 million. Mr. Du made this announcement on his Twitter handle and said he has decided to stake the token on the Curve platform. Investigations into why Egorov decided to sell his CRV tokens revealed that his (Egorov’s) debt on Aave throws more light on his trading strategy.
News making it out yesterday shows that Egorov took a stablecoin loan on the DeFi asset, Aave, which amounts to $60 million, with the CRV tokens as collateral. Today, the loan has gone down to $49 million, showing how he sold the CRV tokens to manage those repayments. As of press time, Egorov has 374 million CRV tokens, currently valued at over $220 million in collateral with a $79 million debt spread across five different DeFi platforms.