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.
OTC Transfers Impact CRV Token Price
According to blockchain security firm PeckShield, one of Egorov’s counterparties from last month transferred 609,000 CRV tokens to Binance on Wednesday. Analysts generally interpret such transfers to exchanges as an intention to sell.
The counterparty had purchased 2.5 million CRV from Egorov for 1 million USDT last month, as part of an effort to reduce liquidation risks associated with Egorov’s $100 million DeFi debt burden. Notable investors involved in the purchase included Tron founder Justin Sun, who bought 5 million CRV from Egorov.
“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 a few hours later, as indicated by on-chain data. The token’s price has since recovered to $0.404.
Egorov sold a total of $46 million worth of CRV to investors in early August. Besides Justin Sun, other investors included trading firm Wintermute and NFT investor Jeffrey Huang. The largest counterparty to Egorov seems to be an anonymous OTC entity, which bought 17.5 million CRV from the founder.
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