DWF Labs, a Web3 investor and market maker, has deposited a massive 2 million CRV tokens worth $683,000 onto Binance, the world’s largest crypto exchange, igniting sell-off rumors in the digital asset space. Notably, the activity, first pointed out by blockchain analysis firm Spot On Chain, took place on August 22.
According to a post, DWF Labs acquired a substantial 12.5 million CRV from Curve DAO founder Michael Egorov through an over-the-counter (OTC) trade last year during a liquidity crisis. The tokens were purchased at $0.4 each, totaling $5 million. DWF Labs currently retains 10.5 million CRV, valued at $3.5 million.
DWF Labs (@DWFLabs) deposited 2M $CRV ($683K) to #Binance 5 hours ago.
Notably, DWF Labs:
• bought 12.5M $CRV from Curve founder Michael Egorov via an OTC at $0.4 ($5M) during last year’s liquidation crisis;
• still has 10.5M $CRV ($3.5M) left, which ranks 3rd in their… https://t.co/cXo5lrHiGR pic.twitter.com/kZiHVwTXO4— Spot On Chain (@spotonchain) August 22, 2024
DWF Labs’ CRV holdings rank third in their portfolio and the Web3 firm has a total estimated loss of $824,000 (-16.5%) based on the current price of the altcoin. At the time of writing, CRV is down 2.31% in the past 24 hours and is trading at $0.3286, according to the data from CoinMarketCap.
DWF Labs’ transfer of 2 million CRV to Binance led to the digital asset sector expecting a sell-off of the digital asset. Meanwhile, the trading volume of altcoin surged 11.04% and currently stands at $171,000 million. Curve DAO suffered a major hack last year which led to Egorov borrowing $95.7 million in stablecoins and the founder’s positions started getting liquidated
CRV has been trending downwards since reaching a high of $0.86 in March. The token fell as low as $0.20 and has recovered but the investors still face considerable bearish pressure. As per the Relative Strength Index (RSI) reading provided by TradingView in the chart below, the altcoin’s price action is currently bullish but the gradient of the RSI line suggests that price drop might follow in the near future.
Further, the accumulation of the token surged in August and the altcoin hit a threshold mid-August with investors awaiting for a bullish confirmation to further buy the token. If CRV holds above $0.3, investors can expect higher prices in the longer term.
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