Just when pessimistic sentiments were ringing loud among crypto traders following the recent CRV token price drop following an exploit, a surprise intervention came from an unexpected quarter: Justin Sun, the founder of Tron blockchain. On Tuesday, blockchain data revealed that Sun acquired around 5 million CRV from a wallet affiliated with Michael Egorov, Curve Finance‘s Founder. Putting in over $2.3 million in exchange for these tokens, Sun has helped to shore up the token’s value and, crucially, defend Egorov’s massive loan from the threat of liquidation.
For this course of action, Sun seemingly brushed aside concerns about unjustifiably propping up a token’s value, and delighted to side with his partners. He was motivated, it appears, by a desire to continue to fortify the bonds between Curve and Tron Network, with talks of introducing a stUSDT pool on Curve for enhancing user benefits. stUSDT is touted as the first genuine world-asset protocol on the Tron Network.
The events leading up to Sun’s intervention speak volumes about the precariousness and unpredictability of the crypto trading world. An exploit that hit Curve Finance, a substantial figure in stablecoin swapping, shook the faith of traders and dragged the CRV token’s price down. This not only created a bearish outlook for the tokens, but even worse, placed a massive $168 million of Egorov’s money dangerously close to imminent liquidation. If liquidated, hauls of assets would be tossed onto a market with already dwindling prices, the worry went. Moreover, the possible ripple effect of such a large liquidation could have dealt a blow to other DeFi protocols, given that CRV is a popular choice as a trading pair and reference point in trading pools across the ecosystem.
There is, however, a concurrent plot apart from protecting partnerships, which is intriguing watchers. Wealthy players like Sun, who have significant token holdings, could also be seen as aiding efforts to keep liquidation at bay to insulate their investments. Such are the whims and quirks of the cryptoworld, susceptible to the ups and downs of speculations and the calculations of influential blockchains. Hold tight, crypto-believers, as we navigate these turbulent waters together!
Source: Coindesk
