Justin Sun, the visionary behind the Tron blockchain, intervened to safeguard against a potential precarious financial scenario arising from the declining value of the CRV token. This decline had the potential to adversely affect a substantial loan linked to Michael Egorov, the founder of Curve Finance.
On Tuesday, blockchain data revealed that Sun acquired approximately 5 million CRV tokens from a wallet labeled "Curve.fi Founder" through an over-the-counter transaction at an average price of $0.4 per token. This purchase amounted to slightly over $2.3 million. Although Sun paid less than the trading price of $0.59 for CRV at the time of the transaction, it exceeded the critical threshold of $0.37, which could trigger the liquidation of Egarov's loan.
“Excited to assist Curve!,” Sun tweeted Tuesday. “As steadfast partners, we remain committed to providing support whenever needed.”
“Our joint efforts will introduce an @stusdt pool on Curve, amplifying user benefits. Together, we aim to empower the community and forge decentralized finance,” Sun added. stUSDT is described as the “first real-world asset protocol on the Tron Network.”
The blockchain data reveals that several other DeFi participants capitalized on the opportunity to acquire discounted CRV tokens through OTC trading soon after Sun's purchases. Among these participants were crypto investor Jeffrey Huang, who is popularly known as Machi Big Brother, acquiring 3.75 million tokens. Additionally, both crypto fund DWF Labs and a DeFi protocol acquired 2.5 million CRV tokens each.
Egorov managed to offload a total of 39.25 million CRV tokens through OTC transactions, raking in an impressive $15.8 million by the European noon hours on Tuesday.
Curve Finance, a prominent platform for exchanging stablecoins, faced a significant exploit on a Sunday, resulting in a sharp decline in the value of the CRV token and putting Egorov's substantial $168 million funds at risk of being liquidated. As a consequence, traders became increasingly pessimistic about the tokens, while also expressing worries that the liquidated assets might have to be sold in a market where prices were already experiencing a downturn.
The divestment of such a substantial position could have exerted significant pressure on other DeFi protocols since CRV serves as a trading pair and stabilizing asset in various trading pools throughout the ecosystem.
However, affluent participants such as Sun are now coming forward to receive recognition from the community and potentially safeguard their substantial token holdings from potential setbacks.