Investor Who Bought Curve Token From Michael Egorov At $0.4 Are Currently At A Loss
- Curve token crashes below $0.4, causing investor losses.
- An investor deposits a large CRV sum on Binance, hinting at a potential sell-off.
- CRV’s trading volume plunges 97% since the July hack; CEO Michael Egorov sells holdings to offset falling prices.
The cryptocurrency market witnessed a sharp decline in the price of CRV, the governance token of Curve, a stablecoin decentralized exchange (DEX). CRV’s value has dipped below the $0.4 mark, leaving early investors, including those who bought from Curve’s CEO Michael Egorov at $0.4, with losses.
According to Lookonchain data, one notable investor, “0xb0b8,” made headlines by depositing 609,057 CRV to Binance, valued at $1 million in USDT. This move has raised speculation of a pending sale, as CRV has been on a steady decline for the past month.
The trading volume of CRV has also taken a substantial hit, dropping by a staggering 97%. This decline comes just two months after the CRV network experienced a hack in late July 2023. According to Kaiko data, the trading volume on centralized exchanges, with Binance being a key player, plummeted from approximately $300 million in late July to a mere $7 million as of September 12.
The hack in July exposed vulnerabilities in Curve stablecoin pools, leveraging an outdated version of the Vyper programming language. The automated nature of Curve pools made them susceptible to re-entrancy attacks.
In response to the security breach, CRV prices have been in a downward spiral, reaching a new low in 2023, dipping below $0.4.
In a related development, Egorov faced the pressure of falling prices by selling his CRV holdings. He had initially used these holdings as collateral for loans from institutions and individuals like Justin Sun, facilitated over-the-counter (OTC) transactions, and sought support from platforms like Aave and Frax Finance.
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