Curve DAO (CRV) Token Price Drops Below $0.40 as Founder’s OTC Transfers Raise Concerns
The price of Curve DAO (CRV) tokens experienced a brief drop below $0.40 as over-the-counter (OTC) transfers made by the project’s founder, Michael Egorov, were later sent to Binance. This move raised concerns among investors as it typically signifies an intention to sell.
Founder’s Counterparty Transfers CRV Tokens to Binance
One of Egorov’s counterparties from last month transferred 609,000 CRV tokens to Binance on Wednesday. This counterparty had purchased 2.5 million CRV for 1 million USDT in an effort to reduce liquidation risks associated with the founder’s $100 million DeFi debt burden. Notable investors, including Tron founder Justin Sun, also bought CRV tokens from Egorov.
Investors at a Loss as CRV Trades at $0.38
Investors who purchased CRV from Michael Egorov at $0.40 are currently experiencing a loss as the token traded for just $0.38 at one point on Wednesday. However, the counterparty later returned their 609,000 CRV tokens back to Binance.
Token Price Recovers and Founder Sells $46 Million Worth of CRV
Following the temporary dip, the price of CRV tokens has recovered to $0.404. In early August, Egorov sold a total of $46 million worth of CRV tokens to various investors, including Wintermute trading firm and NFT investor Jeffrey Huang. The largest counterparty to Egorov was an anonymous OTC entity that bought 17.5 million CRV tokens.
Hot Take: Concerns Arise as Founder’s OTC Transfers Impact Token Price
The recent OTC transfers made by Curve DAO’s founder, Michael Egorov, have caused some concerns among investors. The movement of tokens to Binance raised suspicions of potential selling pressure. However, the counterparty that transferred CRV tokens to Binance later returned them, leading to a recovery in the token’s price. It remains to be seen how these OTC transfers will affect the overall market sentiment and the future trajectory of CRV tokens.
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