Recently, there has been a notable development in the world of Bitcoin and altcoins. It attracts the attention of both investors and enthusiasts. CRV tokens, originally associated with Curve Finance founder Michael Egorov, are on the move. Some of them entered the Binance exchange. Accordingly, this led to a temporary decrease in the token price. It also briefly dropped below $0.4.
Altcoin Curve Finance and hacking incident
Curve Finance, a leading decentralized finance (DeFi) protocol, experienced a security breach in late July. Following this incident, the value of the altcoin CRV token dropped. Thus, Michael Egorov’s important liquidity position was jeopardized. Realizing the risk, Egorov quickly took action. Accordingly, he chose to sell millions of CRV tokens over-the-counter (OTC) at a price of $0.40.
#PeckShieldAlert $CRV has tanked below $0.4.
Michs #OTC counterparty, address 0xb0b8, who received 2.5M $CRV ~43 days ago (supposedly locked for 6 months), has now transferred 609K $CRV to #Binance pic.twitter.com/mJ2HOIbpMY— PeckShieldAlert (@PeckShieldAlert) September 13, 2023
According to information from Peckshield, an on-chain analysis firm, some of the CRV tokens previously held by Egorov were activated on September 13. In particular, the move was made by address “0xb0b8”, which received 2.5 million CRV from founder Egorov in exchange for one million Tether (USDT) at the beginning of August. Accordingly, he transferred 609,000 CRV tokens to the famous cryptocurrency exchange Binance.
Impact on altcoin CRV price
After this transfer, the price of CRV experienced a short decline. It also fell from previous levels to $0.391. It is worth noting that tokens acquired via OTC transactions are intended to remain locked for a period of six months as per the agreement. However, the wallet involved in the transfer appears to have withdrawn the CRV tokens from the exchange without a sale.
The price of $CRV has dropped below $0.4, and investors who bought $CRV from Michael Egorov at $0.4 are currently at a loss.
Investor"0xb0b8" who spent 1M $USDT to buy 2.5M $CRV deposited 609,057 $CRV ($240K) to #Binance an hour ago.https://t.co/cfcSvCPil9 pic.twitter.com/3XjdtSkHuY
— Lookonchain (@lookonchain) September 13, 2023
This also has implications for investors. Following the decline in the value of altcoin CRV, on-chain analysis platform Lookonchain shared a data. Accordingly, investors who previously purchased CRV tokens from Michael Egorov at a price of $ 0.40 now find themselves at a loss. In early August, Egorov made the move. Accordingly, he successfully sold a significant portion of 106 million CRV tokens for 46 million dollars. Accordingly, he had significantly reduced the liquidation risk associated with his position.
Current CRV status
When we look at Kriptokoin.com, altcoin CRV showed a gain of 2.3% in the last 24 hours. At the time of this writing, the token is at an important point. It is trading at $0.411, reflecting the dynamic structure of the cryptocurrency market.
This transfer and its impact on the price of altcoin CRV reflects the complexities in the cryptocurrency landscape. It also reminds us of potential fluctuations. Thus, it underlines the importance of due diligence for investors.
