Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Investor Faces Heavy Loss After Selling This Altcoin

Investor Faces Heavy Loss After Selling This Altcoin

Cryptodnes2024/08/09 15:54
By:Cryptodnes

An institutional investor recently faced a significant loss after selling 25 million Curve DAO Tokens (CRV) over three days.

According to Lookonchain , the investor had initially bought the tokens from Curve Finance founder Michael Egorov at $0.40 per CRV, spending $10 million. However, they sold the tokens at an average price of $0.22, losing $4.58 million. The institution’s identity remains unknown.

Curve, a decentralized stablecoin exchange, uses CRV as its native token in its DAO. This incident highlights the volatility and risks of large crypto holdings. The sell-off caused a sharp drop in CRV’s price, showing the market’s sensitivity to large liquidations.

Meanwhile, Convex Finance, a DeFi protocol on Curve, has gained substantial control in the Curve ecosystem, holding over 50% of vote-locked CRV.

READ MORE:
Will There be an Altseason Despite Economic Uncertainty?

This control extends to other tokens like PRISMA, FXS, and FXN, giving Convex significant influence over governance decisions. Convex can allocate around $25 million in annual emissions, providing CVX token holders with voting rights and an estimated 15% APR passive income.

The 25 million CRV liquidation underscores the risks of crypto investments and the growing influence of DeFi protocols like Convex Finance.

SHARE: SHARES
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

WisdomTree, Which Manages $100 Billion, Names Two Altcoins! "These Will Lead the 2025 Rally!"

WisdomTree argued that XRP and Solana (SOL) will lead the altcoin rally in 2025.

Bitcoinsistemi2025/03/07 01:00

Bitcoin and Ethereum Spot ETFs Continue to Make Outflows as Market Anxiety Continues! Here Are the DetailsBitcoin and Ethereum Spot ETFs See $101.6 M

Bitcoin (BTC) and Ethereum (ETH) spot exchange-traded funds (ETFs) experienced significant net outflows on March 5.

Bitcoinsistemi2025/03/07 01:00

Hours Before the Critical White House Summit, Shocking Claim About XRP-Solana Arrived! – Solana Founder Revealed His Surprising Choice!

Ripple Labs allegedly pressured Trump to include Solana in its crypto reserve to legitimize the inclusion of XRP.

Bitcoinsistemi2025/03/07 01:00