The Curve (CRV) token has been in free fall ever since the Sunday re-entrancy exploit that saw tens of millions of dollars stolen from the protocol. However, while most have shied away from the altcoin, expecting it to fall further, the likes of Tron founder Justin Sun seem to have taken its current downtrend as an opportunity to snap up CRV tokens for cheap.
5 Million OTC Deal For Curve Token
On Tuesday, the on-chain data tracking website Lookonchain highlighted a couple of peculiar transactions that had taken place between Tron founder Justin Sun and Curve founder Michael Egorov. This involved the movement of USDT and CRV tokens back and forth between the public addresses of both founders.
The first transaction originated from Justin Sun’s address where he transferred a total of 2 million USDT to Egorov’s Curve.fi Founder 1 wallet. And then about three minutes later, the Curve.fi Founder 1 wallet sent back a total of 5 million CRV tokens to Sun’s wallet.
Given the timing and circumstances around these transactions, the most likely explanation is that Sun is currently buying CRV tokens over the counter (OTC) from Egorov. If this is the case, then Sun is getting a good deal on these tokens despite the decline.
As Lookonchain points out, given that Sun actually sent 2 million USDT in return for 5 million CRV tokens, then the Tron founder is getting the tokens at an average price of $0.4 per token. CRV tokens are currently trading in the open market at $0.588 at the time of this writing, which means Sun is getting a 30% discount on his purchase.
Can CRV Still Recover From Here?
Over the last two days, Curve has been in the headlines due to the exploit and open interest has risen to match this newfound ‘fame’. Sun’s OTC deal is one of the many large transactions that have taken place over this time.
On Monday, Bitdeer founder Jihan Wu reiterated his support for the token, announcing that he had been buying CRV tokens as well. According to Wu, his bet is on the applications of Curve in the real-world assets space as tokenized assets have been forecasted to reach a $30 trillion market cap by 2030.
Given the massive support that has quickly surrounded Curve, it is no surprise that the altcoin has been able to hold above $0.5, meaning it has fallen less than 50% from its Sunday price. Founder Michael Egorov also made a notable move by paying back 5.13 million in FRAX stablecoins that were borrowed using 12.5 million CRV tokens.
As long as buying pressure continues to mount from this level, then it is possible that the DeFi token will return to its Sunday price above $0.7.