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.

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.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.