Curve Finance (CRV) Price at Risk: Unusual Transactions Linked to Founder
The price of Curve (CRV) dropped to a three-year low of $0.39 on September 13 due to unusual transactions from a wallet address associated with founder Michael Egorov. Reports suggest that an inflow of 609,000 CRV into Binance could be connected to Egorov’s $100 million debt. This raises concerns about the stability of the Curve ecosystem and the possibility of another black swan DeFi liquidation event.
Unusual Transactions Linked to Founder
Blockchain security firm PeckShieldAlert revealed unusual on-chain transactions from wallet addresses linked to founder Michael Egorov. One address received 2.5 million CRV tokens around 43 days ago, supposedly locked for six months, but has now transferred 609,000 CRV to Binance.
Strategic Traders Have Mounted Sell-Orders Around Egorov’s Liquidation Price
In response to Egorov’s transactions, CRV traders have placed sell orders ahead of the $0.371 liquidation price. Data from order books show that investors want to sell 27.7 million CRV tokens before the price hits $0.36, compared to only 23.5 million purchase orders active around those prices.
Market Depth and Potential Rebound
The market depth chart reveals that investors looking to sell ahead of the liquidation price outnumber those looking to buy by more than 4.2 million CRV tokens. However, it is unlikely that CRV will go to zero in the coming days. Some strategic investors have also placed orders below the liquidation price, which could trigger a rebound and support the Curve Finance DeFi ecosystem.
Hot Take: CRV Price Faces Uncertainty Amid Founder’s Unusual Transactions
The recent drop in CRV price and the unusual transactions linked to founder Michael Egorov have raised concerns about the stability of the Curve ecosystem. With reports suggesting a significant debt owed by Egorov, traders are preparing for a potential liquidation event. The market depth shows a higher number of sell orders, indicating potential further price decline. However, strategic investors placing orders below the liquidation price could trigger a rebound and support the Curve Finance DeFi ecosystem. The coming days will be crucial in determining the future of CRV.
By
By
By
By
By