CRV Faces a Storm: DWF Labs' Dump Triggers Market Collapse

DWF Labs has dumped CRV tokens worth approximately $4.12 million. This translates to 12.5 million Curve DAO tokens in the last few days. The dump of CRV tokens reportedly occurred at a loss of around 17.5%. DWF Labs had injected funds into the ecosystem at a time when it was looking for support. In 2023, a hack on the network led Michael Egorov to embark on a massive sale. He found DWF Labs as a suitable partner who was willing to acquire those tokens for around $0.40.

What happened later is obvious: DWF saw a lack of growth and ended up dumping those tokens for a loss. The impact has resulted in a 3.27% decline in CRV over the last 24 hours, with the token currently trading at $0.264 during the articulation process. Dumping tokens has caused selling pressure. The prices have experienced a significant decline, leaving investors with few alternatives but to sell their shares.

The current price of CRV further reflects a decline of 7.79% in the last 7 days and a fall of 17.91% in the last 30 days. The YTD performance is not particularly commendable, as it has declined by 39.29%. DWF Labs has offloaded tokens to Binance, leaving it with no remaining holdings. It concluded the process by transferring 10.5 million CRV in 9 hours. They were worth almost $3.44 million collectively. The deposit price was roughly $0.33, compared to the acquisition price of $0.40.

Spot On Chain announced the transfer of OTC-bought CRV tokens to Binance, which resulted in a loss of approximately 17%. Some community members are speculating that the tokens will be used as collateral, adding that it will bring dips nonetheless and it was a good time to accumulate holdings.

There are both bullish and bearish run projections for accumulation. The next 5 days could see CRV rise by 1.93%. The next 30 days will see CRV decline by 13.94%. CRV price prediction speculates the token to hover within the range of $0.18 and $0.50 by the end of 2024.

There is another theory as to why DWF Labs sold its holdings. It reportedly has plans to buy FLOKI tokens worth $12 million from the open market and its Treasury. DWF Labs had already purchased $10 million worth of FLOKI tokens in February of this year, which is 2024.

The price of CRV remains sensitive to the ongoing selling pressure, as well as the downward trajectory of Bitcoin ($BTC). CRV has only come down based on its historical performance over the last 30 days. When considering the last 90 days, the story is similar. The price has come down from $0.334817 as of the closing of June 19, 2024.

CRV is likely to recover with the price of BTC. Currently, the announcement of rate cuts is closely associated with Bitcoin tokens. Moving forward, it remains to be seen if Curve DAO Token carves its way to individuality, wherein it has little to no effect on BTC’s price.