Michael Erogov, the brains behind Curve Finance, has been busy transferring a hefty sum of over 23 million CRV tokens to Binance, the top dog in the crypto exchange world. This move, which took place over the past five days, hit a peak on December 27 when Erogov shifted a cool 2.5 million CRV. This significant transfer is stirring the pot among investors, as it hints that Erogov might be cashing out on his holdings.
CRV Holding Strong Despite Potential Sell-Off
Despite what seems like a sell-off by Erogov, CRV is holding its ground pretty well. In the last three months, it’s seen a 60% jump from its low point in September 2023. Currently trading above $0.60, CRV is showing resilience against selling pressures. There’s even talk of it possibly breaking past the $0.72 mark to set new highs for 2023. This uptrend, in the face of potential bear attacks and a generally brighter mood in the crypto world, suggests that the market might be seeing Erogov’s actions in a positive light.
Interestingly, CRV’s recent comeback is a big thumbs-up for the protocol, signaling that investor confidence is still strong. This is especially noteworthy given the rough patch earlier in the second half of 2023, when Curve pools were hit by exploits due to a Vyper compiler issue.
Why Erogov Sold Off CRV: A Defensive Move
Back in late July 2023, Curve was dealt a heavy blow by a hack that led to the loss of over $52 million in crypto assets, including CRV worth 7.19 million. This event sent CRV prices tumbling down. Erogov, at that time, was sitting on DeFi loans worth over $100 million, with a massive 427.5 million CRV as collateral. As the value of CRV dropped, so did the safety net for these loans.
Facing a potential liquidation scenario, where protocols would be forced to sell off CRV to repay loans, Erogov, along with some help from big names like Tron’s Justin Sun and Jeffrey Huang, struck deals to sell CRV. This move was crucial in preventing a catastrophic liquidation that could have had a domino effect on other CRV holders.
As of December 27, according to DeBank, Erogov’s crypto portfolio stands strong at over $136 million, with a significant $38.9 million tied up in CRV.
