Curve Finance founder Michael Erogov has recently made a significant move, transferring over 23 million CRV, the native governance token of the Curve DAO, to Binance, one of the largest cryptocurrency exchanges. This move has raised concerns among investors, as it could suggest that Erogov is liquidating his holdings. However, despite this potential selling pressure, the CRV token has remained firm and has actually seen a 60% increase in value since September 2023. It is currently trading above $0.60 and has been rejecting selling pressure, indicating a bullish sentiment in the market. If bullish momentum continues, the token may break above $0.72 and reach new highs in 2023.
Although Erogov’s decision to sell CRV may cause some worry, the overall market seems to interpret the move as bullish. The recent resurgence of CRV is seen as a positive signal for the protocol, indicating that investors still have confidence in it, even after the vulnerabilities that were exploited earlier in the year.
It is worth noting that Erogov had previously been forced to liquidate a significant portion of his CRV holdings to prevent the liquidation of DeFi loans after a hack in July 2023. The hack resulted in the loss of over $52 million in crypto assets, including 7.19 million CRV. If the value of Erogov’s remaining CRV collateral were to decline further, it could lead to liquidation, causing a cascade of selling that would affect other holders using CRV as collateral. To prevent this, several parties, including Tron founder Justin Sun and Jeffrey Huang, made deals to buy CRV from Erogov, stabilizing the situation.
According to DeBank, Erogov’s crypto portfolio is currently valued at over $136 million, with over $38.9 million of that in CRV.
In conclusion, while the transfer of CRV by Curve Finance founder Michael Erogov to Binance may raise concerns among investors, the overall market sentiment remains bullish. The recent increase in CRV value and the intervention to prevent further liquidation suggest confidence in the protocol’s future prospects. Ultimately, investors are advised to conduct their own research and make informed decisions based on their individual risk tolerance.