What is the current status of holding and selling CRV OTC?

Original Title: "Two months ago the curve founder was close to liquidation"

Original Author: Dump Watcher, on-chain activity monitor

Translation: Kaori, Bob, BlockBeats

On the early morning of July 31st, Curve Finance suffered an attack on some stablecoin pools due to a Vyper recursive lock failure. As a result of the attack, the price of CRV began to decline, leading to a decrease in the health ratio of Michael Egorov's on-chain CRV collateralized borrowing and lending. Since the founder of Curve holds a large amount of CRV for on-chain collateralized borrowing and lending, further price drops could lead to liquidation and a chain reaction. In the midst of the crisis, Curve founder Michael Egorov sold CRV through OTC to repay the debt. According to current sales records, the OTC price is 0.4 USDT/CRV, and according to KOL 0xSifu, the sold CRV has lock-up requirements.

Related reading: "Curve founder sells 72 million CRV through OTC to which institutions or individuals?"

The on-chain monitoring agency Dump Watcher investigated the current holdings and sales of CRV by these trading counterparts. BlockBeats has compiled and organized the following content:

Michael Egorov used a large sum of CRV loan to "improve his life", including purchasing two luxury homes in Australia. When the price of CRV began to fall, he was almost facing DeFi loan liquidation.

Previously, the OTC price of CRV was 0.4 USD, which was a discount of over 30% compared to the price of 0.6 USD at that time. According to reports, the buyer and seller reached a "handshake agreement" and agreed not to sell within 6 months. This happened two months ago.

The 17.5 million CRV purchased with 0xf51 is locked in Curve until 2024; Wintermute purchased 12.5 million CRV and is currently acting as LP for CRV-cvxCRV; DWF Labs purchased 12.5 million CRV and sent 2 million CRV to Binance for market making. Afterwards, DWF returned the 2 million CRV from Binance.

0x003 purchased 10 million CRV which is still in the wallet; 65 million CRV bought by 0xc7d is locked in Curve until 2024; 6.2 million CRV was directly sent to Binance wallet, possibly already sold; 5 million CRV was purchased by 0x5Aae to provide liquidity for CRV-cvxCRV.

Justin Sun's purchased 5 million CRV is still in his wallet; 4 million CRV purchased by 0xfa4 has been exchanged for cvxCRV and yCRV; 4 million CRV is in the custody wallet at 0x73F; 3 million CRV has been exchanged for cvxCRV; Yearn has purchased 3 million CRV.

The 2 million CRV purchased by 0x13b is still stored in the wallet; the 2 million CRV purchased by c2tp.eth has been converted to cvxCRV; 1.25 million CRV was bought by StakeDAO; the 2.5 million CRV purchased by "erwwer" was sent to Binance and monitored by Lookonchain. It is likely that "erwwer" did this to create panic and manipulate the CRV price for profit. Since then, these coins have returned to his wallet.

Of the 108.5 million CRV tokens sold by Curve's founder, 10.75 million CRV (approximately 10%) have been sent to trading platforms, some of which have been sent back to wallets. This may indicate that they have been sold at a higher price and bought back at a lower price. Convex Finance appears to be the biggest beneficiary, with up to 45.5 million CRV potentially added to its ecosystem.

During the entire settlement chaos, CRV fell by 30% within 7 weeks, even lower than the off-exchange trading price of 0.4 USD. Will we see a frenzy of selling when one of the 20 buyers surrenders?

Once the six-month lock-up agreement expires in February 2024, will we see a large-scale sell-off of CRV? Don't forget that the address starting with 0xf51 and Huang Lizheng's 20 million CRV are locked up until February 2024. Considering this information, buyers without locked-up CRV will seek to sell at least before February 2024.

Therefore, if most of the buyers in the off-exchange transactions did not sell, why is CRV being sold off? We believe this is because retail investors are selling before the end of the 6-month "lock-up agreement". Retail investors can theoretically act ahead of whales for the first time. These buyers may also hedge with USD margin contracts, pushing prices down.

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