- The native token of stablecoin lending platform CurveDAO, known as CRV, is nearing record lows as the ecosystem rebounds from a significant liquidation event this month.
- Analysis by blockchain tracker Lookonchain reveals that a whale recently moved over $6 million worth of CRV to Binance, likely intending to sell at a loss.
- “The 22 million CRV purchased post-liquidation came at an approximate price of $0.33 per token. Selling now would incur a loss of roughly $1 million,” stated Lookonchain.
CurveDAO’s CRV Token Nears Record Lows Amid Market Recovery
CurveDAO Faces Challenges Following Major Liquidation Event
On June 13th, CurveDAO’s founder, Michael Egorov, announced that his loans, worth approximately $156 million, had been fully liquidated. In response, he executed a strategic sale of millions of CRV tokens to a partner at NextGen Digital Venture, seeking to mitigate market impact.
Impact on CRV Prices and Token Distribution
The sale included 30 million CRV tokens transferred to the partner in scheduled increments until mid-August. During this period, CRV prices hit an all-time low of $0.239 but have since rebounded slightly to $0.28, though this remains a steep 98.3% decline from its peak value of $15.37.
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Conclusion
The recent market events underscore the volatility and risks inherent in the cryptocurrency sector, particularly for assets like CRV. Investors should tread carefully, conducting thorough research and staying informed about ongoing developments to navigate these turbulent waters successfully.
