Michael Egorov, the founder of the largest stablecoin exchange protocol Curve Finance, is set to unlock nearly 160 million CRV tokens on February 1st. This could potentially lead to a sell-off of CRV tokens worth approximately $76.5 million.
Last year, Curve Finance suffered a security breach due to a vulnerability in a specific version of the Ethereum programming language Vyper. This attack affected four of its liquidity pools and had implications for multiple DeFi protocols, resulting in a significant drop in the price of CRV tokens.
At that time, Michael Egorov, the founder of Curve, used a large amount of CRV as collateral to borrow funds from various lending platforms. This put him at risk of liquidation, and he was compelled to sell nearly 160 million CRV tokens OTC to institutions and individual investors such as Binance Labs, Wintermute, Justin Sun, and MJG at a price of $0.4 per token. This allowed him to repay his debts, amounting to $63.76 million.
According to data analyst Yanjin, the 160 million CRV tokens sold by Michael Egorov in the OTC market will be unlocked on February 1st, ending a six-month lock-up period during which he verbally promised not to sell. Yanjin also mentioned that although the lock-up was not legally binding, the majority of investors have adhered to the agreement by storing their CRV tokens in wallets, Curve lock-ups, or Convex. Only two investors have sold a small portion of their CRV tokens, amounting to 12,500 and 50,000 tokens, respectively.
CoinGecko data shows that the current price of CRV tokens is $0.482. Based on the current market price, investors who purchased CRV tokens from Michael Egorov through OTC transactions have already gained over 20% in profits. If they choose to sell after the lock-up period ends on February 1st, the market could potentially face a sell-off worth approximately $76.5 million. However, it is uncertain whether these investors, who are mostly large institutions or OGs, will actually sell, and further observation is needed.
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Related Reports:
– MJG Comes to the Rescue of DeFi: Purchases 3.75 Million CRV Tokens and “Locks them all”
– Whale Assists: Curve Founder Collateralizes More CRV to Repay $70 Million Debt to Aave
– CRV Surges 20% Strongly! Whale Withdraws 20 Million Tokens in Three Days, Can Curve Regain its Glory?
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