According to on-chain research firm Lookonchain, Michael Egorov, the creator of Curve Finance, appears to have offloaded 72 million CRV tokens to 15 organizations in exchange for $28 million in a series of substantial over-the-counter purchases. The findings are supported by data from a Spotonchain Dune Analytics dashboard and Nansen analyst Sandra Leow.
The selling blitz by Egorov comes at a time when the CRV token is having difficulty. Its value has dropped 22% in the last month as a result of a security flaw in various production pools on the platform. It is now worth $0.58.
Traders think Egorov’s decision to sell CRV tokens is a proactive move to minimize his debt on DeFi platforms, avoiding future liquidation risks related to his substantial loan positions.
According to Lookonchain, “Curve Finance founder Michael Egorov sold a total of 72 million CRV to 15 institutions/investors via OTC at a price of $0.40, receiving $28.8 million to settle debts.”
Important Counterparties
An anonymous account secured the greatest proportion of the prominent purchasers, purchasing 17.5 million CRV tokens. Additionally, Tron’s creator, Justin Sun, paid $2 million for 5 million CRV. Another 4.25 million CRV tokens were sold to crypto trader DCFGod, with NFT owner Jeffrey Huang, also known as Machi Big Brother, receiving 3.75 million CRV.
Jun Du, a co-founder of Huobi, said earlier today that he had purchased 10 million CRV tokens for $4 million. He then announced on Twitter that he had decided to bet the tokens on Curve
Notably, Egorov’s debt condition on the DeFi loan portal Aave reveals information about his financial activities. He just got a stablecoin loan of $60 million on Aave secured by CRV collateral. It’s now down to $49 million.
As of right now, as reported by Lookonchain, Egorov has 374 million CRV tokens altogether, with debt on five DeFi platforms totaling $79 million and collateral worth about $220 million
