Investor Faces Heavy Loss After Selling This Altcoin

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.

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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.

Alexander Stefanov