In a series of significant over-the-counter deals, Michael Egorov, the founder of Curve Finance, appears to have offloaded 72 million CRV tokens to 15 entities in exchange for $28 million, according to on-chain analyst firm Lookonchain. Data from a Dune Analytics dashboard from Spotonchain, and Nansen analyst Sandra Leow corroborate the finding.
Egorov’s selling spree coincides with a challenging period for the CRV token. Its value has declined 22% in the past month, following a security exploit of multiple factory pools on the platform. It is currently trading at $0.58.
Market analysts believe Egorov’s decision to sell CRV tokens is a proactive measure to reduce his debt on DeFi platforms, thus avoiding potential liquidation risks associated with his extensive loan positions.
“Curve Finance founder Michael Egorov sold a total of 72M CRV to 15 institutions/investors via OTC at a price of $0.40, receiving $28.8M to repay debts,” Lookonchain stated.
Among the notable buyers, an anonymous address secured the largest share, acquiring 17.5 million CRV tokens. Additionally, Tron’s founder, Justin Sun, purchased 5 million CRV for $2 million. Another 4.25 million CRV tokens were sold to crypto trader DCFGod, with 3.75 million CRV going to NFT owner Jeffrey Huang, known as Machi Big Brother.
Earlier today, Huobi co-founder Jun Du confirmed the procurement of 10 million CRV tokens for $4 million and subsequently informed on Twitter his decision to stake the tokens on Curve.
Notably, Egorov’s debt situation on the DeFi lending platform Aave sheds light on his financial strategies. Just yesterday, he had a stablecoin loan on Aave amounting to $60 million, backed by CRV collateral. Today, it’s down to $49 million, illustrating how he’s used the CRV sell-off to manage these repayments.
Currently, Egorov holds a total of 374 million CRV tokens, valued at approximately $220 million in collateral with debt of $79 million across 5 DeFi platforms, according to Lookonchain.
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