- Curve Finance’s total value of assets locked was slashed by half over the past month after mass withdrawals that followed the $70 million exploit.
- TRON’s founder Justin Sun bought 5 million CRV tokens from Curve CEO Michael Egorov in a likely OTC deal, at an average price of $0.4.
- Sun announced a partnership between TRON and CRV on stUSDT, while Coinalyze data reveals traders are lining up to short Curve tokens.
Justin Sun informed the TRON community of the latest partnership with CRV. Curve has been struggling since its $70 million exploit. CEO Michael Egorov’s $168 million in CRV holdings, nearly 34% of CRV token’s market cap, was at risk of liquidation before the founder started finalizing Over The Counter (OTC) deals and partnerships in the ecosystem.
A forced liquidation could have stressed CRV price further, at a time when a large volume of traders are looking to short the token, anticipating price declines in the future.
Also read: BALD rug pull wipes out 90% of value, hitting Base DEX LeetSwap: A timeline of events
Justin Sun’s TRON partners with Curve CRV on stUSDT
TRON founder, Justin Sun, informed the community of his partnership with Curve on stUSDT. On July 4, TRON ecosystem launched stUSDT, similar to Ethereum’s stETH on the Lido protocol. The token is a decentralized asset that serves as a proof of investment in real-world assets and holders can generate passive income through the use of stUSDT.
Excited to assist Curve! As steadfast partners, we remain committed to providing support whenever needed. Our joint efforts will introduce an @stusdt pool on Curve, amplifying user benefits. Together, we aim to empower the community and forge a decentralized finance!
— H.E. Justin Sun 孙宇晨 (@justinsuntron) August 1, 2023
Sun told the community that as partners, TRON and CRV will remain committed to amplifying user benefits on the stUSDT pool on Curve. The development comes after on-chain analytics trackers Lookonchain and Peck Shield identified a sale of 5 million CRV tokens to Sun. Sun likely scooped up the CRV tokens in an OTC deal, buying at an average price of $0.40, from founder Michael Egorov.
Curve CEO sells 5 million CRV tokens to TRON’s Justin Sun
Sun’s partnerships came to CRV’s aid and founder Michael Egorov has been spotted putting out fires all day, according to on-chain data.
CRV price faces risk of decline, CEO attempts to fight mass liquidation
CRV price has faced a consistent decline in its price since the $70 million exploit. Find more details about it here. The total value of assets locked in the Curve Finance protocol is slashed in half, from $4.39 billion on July 2 to $2.08 billion on August 1. These statistics are based on DefiLlama data, as seen below.
Curve Finance Total value of assets locked in the protocol
Curve has been stressed since the exploit and CRV price dropped 44.6% from $0.876 on July 14 to $0.485 early on Tuesday. At the time of writing, CRV price has recovered to $0.603 on Binance. Amid the turbulence in CRV, the founder tried to stabilize his DeFi position worth $168 million that is at risk if CRV price drops heavily, specifically to $0.372.
CRV liquidations at $0.372
As seen in the chart above, 303.8 million CRV tokens are likely to suffer liquidation if the DeFi token’s price drops to $0.372. In an effort to fight the liquidation, Egorov made several key transfers recorded on-chain. The CRV founder paid 5.13 million FRAX stablecoin loan and reclaimed 12.5 million CRV tokens as collateral. The founder then moved the 12.5 million reclaimed CRV from Fraxlend to a fresh wallet.
CRV transfers by wallet identified as Egorov
Egorov also received several USDT transfers, these are likely related to the OTC sales of CRV token. Sandra, on-chain analyst at Nansen, identified several CRV transfers, listing them in a recent tweet:
The Curve OTC War updates:
— Sandra (@sandraaleow) August 1, 2023
17.5M CRV to 0xf51
5M CRV to Justin Sun
4.25M CRV to DCFGod
2.5M CRV to Ox4d3
2.5M CRV to DWF Labs
2.5M CRV to Cream: Multisig
1.25M CRV to 0xcb5
3.75M CRV to machibigbrother.eth
250k CRV to 0x9bf
Based on data from Coinalyze, Open Interest (OI) in CRV climbed 50% within the past 24 hours.
CRV/USD price chart and open interest
According to the chart above, OI is currently $127.23 million. The funding rate is negative across all derivatives exchanges, signaling traders are willing to pay to keep short positions open, anticipating further losses in CRV price.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.