The founder of the largest stablecoin exchange protocol, Curve Finance, Michael Egorov, is facing potential selling pressure as nearly 160 million CRV tokens, which he feared would be liquidated and sold over-the-counter (OTC), are set to unlock on February 1st. The unlocking of these tokens could result in approximately $76.5 million worth of selling pressure for CRV.
Last year, in July, Curve Finance suffered a hack due to a vulnerability in a specific version of the Ethereum programming language, Vyper. This hack affected four of Curve’s liquidity pools, impacting multiple DeFi protocols and causing a drop in the price of CRV tokens.
At the time, Michael Egorov, the founder of Curve, had used a significant amount of CRV as collateral for loans on various lending platforms, putting him at risk of liquidation. Consequently, he was forced to sell nearly 160 million CRV tokens OTC at a price of $0.4 per token to institutions and individual investors, including Binance Labs, Wintermute, Justin Sun, and Mago Dage, to repay his debts amounting to $63.76 million.
According to data analyst Yu Jin, who monitored the situation, the 160 million CRV tokens sold by Michael Egorov through the OTC sale will end their six-month lock-up period on February 1st. Yu Jin also mentioned that although there were no contractual obligations for the lock-up, the majority of investors adhered to the agreement by storing their CRV tokens in wallets, Curve lock-ups, or Convex. Only two investors sold a small portion of their CRV tokens, amounting to 12,500 and 50,000 tokens, respectively.
CoinGecko data shows that the current price of CRV tokens is $0.482 at the time of writing. Based on the current market price, investors who purchased CRV tokens from Michael Egorov through the OTC sale have already gained over 20% in profits. If they choose to sell after the lock-up period ends on February 1st, there could be approximately $76.5 million worth of selling pressure in the market. However, it remains to be seen whether these investors, who are mostly large institutions or OGs, will actually sell their tokens.
CRV Token Price:
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Related Reports:
– “Mago Dage Comes to the Rescue of DeFi”: Buys 3.75 million CRV and “Pledges All for Lock-up”
– Whale Assists: Curve Founder Collateralizes CRV Again! Repays Aave Debt of 70 million EUR
– CRV Surges Strongly by 20%! Whale Withdraws 20 million tokens in Three Days, Can Curve Regain Its Glory?
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