Curve Founder Sells $19 Million in CRV Tokens to Repay Debts
Michael Egorov, the founder of Curve (CRV), has sold an additional 34 million CRV tokens, worth $19.72 million, to repay his debts. This comes as the token prices dropped 20% in the last seven days. Egorov has already sold a total of 106 million CRV tokens, amounting to $42.41 million, since the “Reentrancy Hack” that affected Curve. He currently has a debt of $65.34 million, according to Lookonchain data.
Key Points:
- Egorov has sold a total of 106 million CRV tokens for $42.41 million.
- The Curve Protocol experienced a hack in which $52 million in crypto assets were drained from the platform’s liquidity pools.
- Egorov took loans from crypto-lending platforms to replenish Curve’s liquidity pools.
- Egorov still has 346.93 million CRV tokens in five platforms that risk being liquidated as token prices continue to drop.
- Egorov is selling CRV tokens in OTC deals to repay his debts, but there is still a significant amount to be repaid.
What’s Next for CRV Price?
The price of Curve DAO tokens (CRV) has dropped over 20% in the last seven days, currently sitting at $0.58. Egorov’s debts and potential liquidation of his position pose a high risk for Curve, as it could trigger another liquidity crisis and cause further drops in price. With a decrease of over 36% in Total Value Locked (TVL) in the last 30 days, Curve’s position as a leader in stablecoin liquidity in the DeFi ecosystem is under threat. Investors have withdrawn close to $1 billion from Curve’s liquidity pools, loans, and protocol.
Hot Take:
Egorov’s ongoing sale of CRV tokens indicates the desperate measures he is taking to repay his debts and protect his position. With the risk of liquidation and the decreasing value of CRV, the future of Curve is uncertain. The hack and subsequent liquidity crisis have severely impacted the project’s reputation and investor confidence. As the crypto market continues to fluctuate, it remains to be seen if Curve can recover and regain its position as a leading player in the DeFi space.