Stablecoin exchange protocol Curve Finance’s founder, Michael Egorov, is set to unlock nearly 160 million CRV tokens on February 1st, after fearing liquidation and selling them over-the-counter (OTC) last year. The first whale to start selling is Taiwanese celebrity Ma Ji (MJ), a well-known figure in Taiwan.
Background:
MJ Saves DeFi: Provides Financial Support to Curve Founder, Purchases 3.75 Million CRV Tokens and Locks Them Up
Curve Finance, the largest stablecoin exchange protocol, suffered a hack in July last year due to a vulnerability in a specific version of the Ethereum programming language, Vyper. This attack affected its four liquidity pools, impacting multiple DeFi protocols and causing a drop in the price of CRV tokens.
At the time, Curve founder Michael Egorov had used a large amount of CRV as collateral to borrow from multiple lending platforms, putting him at risk of liquidation. As a result, he was forced to sell nearly 160 million CRV tokens over-the-counter (OTC) in August 2020 at a price of $0.4 per token to institutions and individuals, including Binance Labs, Wintermute, Justin Sun, and MJ, among others, in order to repay the debt, receiving $63.76 million in return.
Further reading:
Updated List of Private Buyers for the OTC Sale of 52 million CRV: Justin Sun, MJ, Wintermute…
According to blockchain analyst Yu Yan’s data, the 160 million CRV tokens previously sold by Curve founder Michael Egorov through OTC will end their six-month lock-up period today (1st), as agreed verbally. Therefore, the flow of these unlocked CRV tokens has become a focus of the market.
MJ takes the lead in selling, earning £250,000
According to analyst Yu Yan’s tracking, within 15 minutes after the lock-up period ended, MJ immediately started selling CRV. Based on the data, MJ redeemed the 3.75 million CRV tokens (worth $1.75 million) purchased from Curve founder via OTC and immediately transferred them to the cryptocurrency exchange Binance.
It is understood that MJ spent $1.5 million USDT in August last year to purchase CRV at $0.4 per token, and now, after selling, will realize a profit of approximately $250,000 (+16%).
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Following MJ, the second OTC buyer of CRV, identified as OpenSea user “erwwer,” also took action. This user transferred the 2.5 million CRV tokens (worth $1.14 million) purchased from Curve founder Michael Egorov to the cryptocurrency trading platform Binance. It is understood that erwwer expects to realize a profit of approximately $140,000 (+14%) from this sale.
CRV price drops 7% in 24 hours
According to CoinGecko data, the CRV token is currently trading at $0.4469, down 7% in the past 24 hours. Based on the current market price, investors who bought CRV tokens from Michael Egorov through OTC have already gained over 11.25% in profit. However, we do not know if these whales have privately agreed on their exit strategies based on their capital holdings. All we know is that news of whale sell-offs in the future will continue to occur.
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CRV Token Price
Related Reports:
MJ Saves DeFi: Provides Financial Support to Curve Founder, Purchases 3.75 Million CRV Tokens and Locks Them Up
Whales Assist: Curve Founder Collateralizes CRV Again! Repays Aave’s £70 Million Debt
CRV Surges 20%: Whales Withdraw 20 Million Tokens in Three Days, Can Curve Regain Glory?