Justin Sun Buys $2.9M CRV Tokens, Partners with Curve Finance in Crypto Deal – Coinpedia Fintech News
The drama unfolds in the crypto-sphere as Justin Sun, founder of the blockchain network Tron, allegedly purchased 5 million CRV tokens (equivalent to roughly $2.9 million) from Curve founder Michael Egorov. The purchase, which appears to be an over-the-counter (OTC) deal, involved a transaction of $2 million, according to PeckShield, a notable security firm. Further confirmation arrived from Lookonchain analysts who echoed the findings.
Sun Shines on a New Partnership
Justin Sun announced a partnership between Tron and Curve, strengthening the links between the two blockchain giants. He expressed his excitement about assisting Curve, emphasizing the commitment to provide support and work towards creating a decentralized finance ecosystem. A significant aspect of this partnership is the introduction of an stUSDT pool on Curve, set to augment user benefits.
What makes stUSDT noteworthy is that it is the first real-world asset protocol on the Tron Network, marking a significant step for both entities in their journey to reshape the decentralized finance landscape.
A Twist in the CRV Tale
Amid this strategic power play, the CRV market showed signs of turbulence. The token’s value, hitting a low of $0.50 earlier today – the lowest since November of the previous year – managed to bounce back to $0.59. Concurrently, open interest in CRV-linked perpetual futures swelled to over $124 million, as per Coinalyze data. Given the negative funding rates, market speculations suggest that traders might be shorting CRV, expecting further price dips.
The Curve’s Countermove
As turbulence gripped the CRV market, Curve founder Egorov responded with a series of key moves to protect his sizable DeFi position, which could be jeopardized by a substantial CRV price drop. Egorov repaid a significant 5.13 million FRAX stablecoin loan, reclaimed 12.5 million CRV tokens as collateral, and moved the same amount from Fraxlend to a fresh wallet.
These strategic maneuvers came in the wake of USDT stablecoin inflows from anonymous wallets into Egorov’s account, igniting rumors about possible OTC deals or off-platform transactions.
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