Tron Founder’s OTC Deal Raises Questions
Tron founder Justin Sun’s wallet has acquired 5 million CRV tokens, valued at approximately $2.9 million, from Curve founder Michael Egorov for $2 million in what appears to be an over-the-counter (OTC) deal, according to security firm PeckShield and Lookonchain analysts.
Justin Sun buys $2.9 million of CRV from Michael Egorov and partners with Curve https://t.co/KW3ewqL6C5
— The Block (@TheBlock__) August 1, 2023
OTC Transactions
The exact nature and intent of these transactions remain speculative, but on-chain data suggests a potential off-platform deal with Egorov to purchase CRV tokens at a rate below the market price, specifically at $0.40 each.
The connection between Sun and Egorov seems to be further confirmed by Sun’s announcement of a partnership between Tron and Curve. Sun expressed excitement about assisting Curve and emphasized their commitment to providing support as steadfast partners. The collaboration aims to introduce an stUSDT pool on Curve to enhance user benefits and promote decentralized finance.
The CRV market has been experiencing turbulence, with its value hitting a low of $0.50 before rebounding to $0.59, the lowest point since the previous November. Concurrently, open interest in CRV-linked perpetual futures has surpassed $124 million, as per Coinalyze data. Negative funding rates, also monitored by Coinalyze, suggest that traders may be shorting CRV in anticipation of further price dips.
Stabilizing DeFi Position
In response to the market volatility, Michael Egorov, the founder of Curve, has taken measures to stabilize his personal large DeFi position, which could be at risk if the CRV price experiences significant drops. Egorov made several key transfers, including repaying a 5.13 million FRAX stablecoin loan and reclaiming 12.5 million CRV tokens as collateral. Observers also noted on-chain data showing Egorov moving 12.5 million CRV from Fraxlend to a new wallet.
Prior to these actions, Egorov received USDT stablecoin from anonymous wallets, sparking speculation among crypto commentators about potential OTC deals or transactions occurring outside the main platform.
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The unfolding situation has garnered attention within the crypto community, as questions arise about the transparency and implications of such OTC transactions involving prominent figures in the industry. As the CRV market continues to fluctuate, market participants will closely monitor further developments and announcements from both Tron and Curve.
