Curve Finance Founder Moves Over 23 Million CRV to Binance
Michael Erogov, the founder of Curve Finance, has transferred more than 23 million CRV tokens to Binance over the past five days. On December 27 alone, he moved 2.5 million CRV tokens. This move has raised concerns among investors as it suggests that Erogov may be liquidating his holdings.
CRV Token Remains Strong Despite Founder’s Sale
Although the founder’s sale of CRV tokens could potentially exert downward pressure on the price, the token has remained firm and has actually increased by about 60% since its lows in September 2023. The token is currently trading above $0.60 and has rejected selling pressure according to the daily chart.
The market seems to view Erogov’s actions as bullish, as the token continues to trend higher and reject bearish attempts.
Erogov Sold CRV to Prevent DeFi Loan Liquidation
Erogov was forced to liquidate a significant portion of his CRV holdings following a hack in July 2023 in order to prevent further liquidation. The hack resulted in the loss of over $52 million worth of crypto assets, including 7.19 million CRV tokens. As a result, prices crashed.
Erogov had over $100 million in DeFi loans backed by CRV as collateral at the time of the hack. As the value of CRV fell, the health of his loans also deteriorated. To prevent further liquidation, Tron founder Justin Sun and other parties made deals to buy CRV from Erogov.
Erogov’s Crypto Portfolio Worth Over $136 Million
According to DeBank, Erogov’s crypto portfolio was valued at more than $136 million on December 27. Out of this, he owns over $38.9 million worth of CRV tokens.
Hot Take: Erogov’s Token Sale Raises Concerns
The recent sale of CRV tokens by Curve Finance founder Michael Erogov has raised concerns among investors. This move has led to speculation that Erogov may be liquidating his holdings, potentially putting downward pressure on the token’s price. However, despite the founder’s sale, the CRV token remains strong and has seen a significant increase in value over the past few months. The market seems to interpret Erogov’s actions as bullish, as the token continues to trend higher. It is important for investors to closely monitor any further developments related to Erogov’s token movements and their potential impact on the market.
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