The price of Curve DAO (CRV) tokens briefly fell below $0.40 on Wednesday as over-the-counter (OTC) transfers made by the DeFi project’s founder, Michael Egorov, were later transferred to Binance.
- As reported by blockchain security firm PeckShield, one of Egorov’s counterparties from last month transferred 609,000 CRV tokens to Binance on Wednesday. When investors send funds to exchanges, analysts generally view this as reflecting an intention to sell.
- The counterparty bought 2.5 million CRV from the founder for 1 million USDT last month, as part of a joint effort to reduce liquidation risks associated with the founder’s $100 million DeFi debt burden. Another investor included Tron founder Justin Sun, who bought 5 million CRV from the founder.
- “Investors who bought CRV from Michael Egorov at $0.40 are currently at a loss,” noted analytics platform Lookonchain. At 3:30 a.m. ET on Wednesday, CRV traded for just $0.38.
- However, the counterparty appears to have returned their 609,000 CRV from Binance just a few hours later, on-chain data shows. The token’s price has since recovered to $0.404.
- In total, Ergorov sold $46 million worth of CRV to investors in early August. Alongside Sun, other investors included trading firm Wintermute and NFT investor Jeffrey Huang.
- The largest counterparty to Ergorov appears to be an anonymous OTC entity, which bought 17.5 million CRV from the founder.