Curve DAO Token

<p>Jun Du, Chinese Co-Founder of Seychelles-headquartered global crypto exchange Huobi, has recently completed the purchase of 10 million curve tokens (CRV) from Curve founder Michael Egorov.</p><h2 id="header-0">Curve protocol loan exposure</h2><p>The transaction amounted to $4 million and is part of Egorov’s ongoing efforts to mitigate his at-risk loan exposure, a further consequence of last week’s $52 million<a href="https://decrypt.co/151090/defi-blue-chip-tokens-hit-with-bearish-week-amid-curve-finance-hack" rel="noopener noreferrer nofollow"> hack</a> of the Curve DeFi protocol.</p><p>Initially, Du<a href="https://twitter.com/DujunX/status/1686296439876648960" rel="noopener noreferrer nofollow"> expressed</a> his interest in acquiring 10 million CRV tokens at the prevailing rate of $0.40. This price aligned with multiple over-the-counter (OTC) agreements between Egorov and various cryptocurrency individuals. According to a<a href="https://www.theblock.co/post/242925/huobi-co-founder-jun-du-buys-10-million-crv-from-michael-egorov" rel="noopener noreferrer nofollow"> report</a> by The Block, Du later confirmed the purchase through a Twitter direct message, revealing that he had chosen to lock up the acquired tokens as veCRV. This lock-up mechanism grants voting rights within the Curve platform while requiring the tokens to remain locked for a specified duration.</p><p>“I intend to uphold this lock-up for at least a year, with optimism for continuous improvements within the Curve ecosystem,” Du stated, highlighting his commitment to the project’s long-term growth.</p><p>On his Twitter account, Du<a href="https://twitter.com/DujunX/status/1686751264200343552" rel="noopener noreferrer nofollow"> emphasized</a> his unwavering support for Curve, drawing parallels to his past backing of BendDAO during a liquidity crisis. He clarified: “Challenges faced now are transient, and collective support will foster a stronger industry.”</p><p>Alongside being a Co-Founder at Huobi, Du holds the positions of CEO at New Huo Tech, a digital asset service platform, and Co-Founder and General Partner (GP) at the Web3 fund ABCDE.</p><h2 id="header-1">Ongoing token sell-off</h2><p>In actively managing liquidation risk, Egorov is persistently offloading CRV tokens to bolster his loan position, given his significant exposure. He has utilized multiple DeFi lending platforms to secure loans, predominantly employing CRV tokens as collateral to borrow stablecoins. His borrowing activity on platforms like Aave alone has involved $56 million in stablecoins against $149 million worth of CRV collateral.</p><p>Egorov’s health ratings on these platforms have improved recently, hovering around 1.67 or higher. Nonetheless, there remains a lingering risk associated with potential liquidation of his positions if CRV’s price were to dip substantially. This could potentially lead to bad debt scenarios for the platforms, particularly due to the substantial proportion of CRV supply involved.</p><h2 id="header-2">Sales of 72 million CRV</h2><p>Egorov’s token sales have amounted to 72 million CRV, according to Nansen analyst Sandra Leow. Notable recipients of these tokens include Tron Founder Justin Sun, crypto trader “DCFGod,” and Andrew Kang, Co-Founder of Mechanism Capital.</p><p>Aave Chan Initiative, an entity tied to the Aave protocol, has proposed that the Aave treasury allocate funds to purchase up to $2 million worth of CRV tokens. The intention is to lock up these tokens as veCRV for an extended period, potentially up to four years. This move is aimed at further reinforcing the stability of CRV’s market dynamics.</p>

Huobi Co-Founder Acquires 10 Million CRV Tokens

Table of Contents

CoinNess Global

Other articles published on Aug 4, 2023

Ether ETF Applications Flood SEC, ProShares Joins the Race

Oman proposes Crypto regulation in line with FATF guidelines

Coinbase Seeks Dismissal of SEC Lawsuit, Is XRP-Like Win in View?

Coinbase Officially Files Motion to Dismiss SEC Lawsuit

Apecoin Price Prediction 2023: Will APE Price Descend Further?

Bloomberg Analysts Revealed the Chance of Ethereum ETF Applications Approval: “Spot ETH ETFs Coul...

Join our free newsletter for daily crypto updates!