Whales, which are large holders of a particular cryptocurrency, play a significant role in the market.
In a recent development, Michael Egorov, the founder and CEO of Curve Finance, deposited a substantial amount of 38 million CRV token, equivalent to $24 million, into the decentralized lending platform Aave. This action was detected by Lookonchain, an on-chain analytics unit. Egorov's decision to deposit such a considerable amount can be seen as a strategic move to increase collateral and mitigate the risk of loan liquidation during a period of market uncertainty caused by the SEC lawsuit against Binance, Coinbase, and other tokens categorized as "securities".
What stands out in this situation is the magnitude of the collateral controlled by Egorov. He collateralized his Aave loan with a whopping 277 million CRV token, representing about 32% of the total circulating supply of CRV based on Coingecko data.
According to data from DeBank, Egorov's initial loan from Aave was substantial, valued at over $65 million in USDT and USDC stablecoins. To secure this loan, the CEO deposited nearly one-third of the total circulating supply of CRV tokens into Aave.
With a holding ratio like this, CRV price can easily be manipulated. Show Less
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