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Curve Finance’s native token $CRV has recovered from a 6-month low, and many believe that the news of Huobi co-founder Jun Du buying $CRV tokens has contributed to it.
Jun Du bought 10 million tokens valued at $4 million from Micheal Egorov, founder of Curve. Egorov had offered his tokens for sale to bolster his at-risk loan positions, primarily for borrowing stablecoins using $CRV tokens as collateral.
Some Positives For Curve Finance Despite Hack
Curve Finance, one of the biggest DeFi protocols on the Ethereum blockchain, recently saw its in-house $CRV price recover about 25% at the start of the month. It had previously dropped by 35% between July 30-31 following the panic selloff spearheaded by Curve Finance’s $47 million exploit.
The July reentrancy attack was not the only exploit recorded on Curve Finance as the DeFi protocol had previously lost over $570,000 in August 2022 after hackers compromised the front end of its liquidity pool.
However, the recent acquisition of 10 million tokens by Jun Du projects a positive outlook for $CRV tokens, especially the recent attack on its ecosystem. Confirming the transaction, Du noted that he has locked up his investment for a period of one year as veCRV.
Apart from Du, the Aave Chan Initiative, a delegate platform from Aave’s governance forum, recently put forward a proposal for the purchase of about $2 million worth of $CRV. After the planned purchase, which is to 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 acceptance of the $CRV token demonstrates its popularity and utility.
One such investor who remains bullish on $CRV is Justin Sun, founder of the Tron network. He recently acquired 5 million $CRV from Egorov by paying using Tether’s USDT in a direct Over-the-counter (OTC) trade. Justin confirmed the purchase in a tweet noting that both platforms “As steadfast partners” will keep being “…committed to providing support whenever needed.”
According to a Twitter post by Sandra from Nansen, other popular purchasers 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 through OTC, with Egorov realizing over $20 million, which he applied to balancing his borrowings and removing himself from liquidation. Egorov also sent another huge supply of $CRV (17.5 million) to an address starting with 0xf51.
Once the largest DeFi protocol on the Ethereum blockchain, the vast majority of Curve trading volumes still come from Ethereum.