Curve Finance’s native token CRV has recovered from a 6-month low, with many believing the news that Huobi co-founder Jun Du bought CRV tokens contributed to this.
Jun Du bought 10 million tokens worth $4 million from Micheal Egorov, founder of Curve. Egorov had put his tokens up for sale to bolster his risky lending positions, mainly for borrowing stablecoins with CRV tokens as collateral.
Some positives for Curve Finance despite hack
Curve Finance, one of the largest DeFi protocols on the Ethereum blockchain, recently saw its internal CRV price recover about 25% at the start of the month. It had previously fallen 35% between July 30 and 31 after the panic sell-off led by Curve Finance’s $47 million exploit.
The July return attack wasn’t the only exploit registered on Curve Finance, as the DeFi protocol had lost more than $570,000 earlier in August 2022 after hackers compromised the front end of its liquidity pool.
However, Jun Du’s recent acquisition of 10 million tokens projects a positive outlook for CRV tokens, especially the recent assault on the ecosystem. In confirming the transaction, Du noted that he has locked in his investment as veCRV for a period of one year.
Aside from Du, the Aave Chan Initiative, a delegate platform of Aave’s governance forum, has recently put forward a proposal to purchase approximately $2 million worth of CRV. After the planned purchase, which will be made by the Aave Treasury, the CRV tokens would also be locked up as veCRV for about four years.
Token price recovers from weekly lows | Source: CRVUSD on Tradingview.com
CRV remains popular among investors
Egorov has so far sold 72 million CRV tokens to various investors and the continued purchase and adoption of the CRV token demonstrates its popularity and usefulness.
One such investor who remains optimistic about CRV is Justin Sun, founder of the Tron network. He recently acquired 5 million CRV from Egorov by paying using Tether’s USDT in an instant over-the-counter (OTC) transaction. Justin confirmed the purchase in a tweet noting that both platforms will remain “as steadfast partners” “…committed to providing support when needed.”
That reports a Twitter after by Sandra from Nansen, other popular buyers of Curve tokens include Cream Finance, Machi Big Brother, DWF Labs, DCFGod and Andrew Kang, co-founder of Mechanism Capital.
A vast majority of these transactions were conducted over OTC, with Egorov realize over $20 million, which he used to balance his loans and pull himself out of liquidation. Egorov also sent another huge supply of CRV (17.5 million) to an address beginning with 0xf51.
Once the largest DeFi protocol on the Ethereum blockchain, the vast majority of Curve’s trading volumes still come from Ethereum.
Featured image from iStock, chart from Tradingview.com