Curve Finance’s Michael Egorov Resumes $CRV Selloff as Smart Money Flocks to Ethereum

While the wider world of cryptocurrency is in recovery, Michael Egorov, the founder of Curve Finance, has picked up where he left off earlier this year and resumed a pattern of large token sales—notably, sales of his own $CRV tokens.

His most recent sale, of about 236,457 $CRV tokens, valued at approximately $108,000, barely scratches the surface of the large amounts he’s been offloading on a seemingly regular basis. During this sale and especially during a series of earlier ones, Egorov has been selling right at or near local price peaks, which is a great look if you’re a fan of token sale profits.

The recent sales appear to be part of a recovery in the market, where just the opposite has occurred lately—many investors are expressing renewed interest in the world of cryptocurrencies. But there’s a dark cloud over this renewed interest, and it centers on $CRV and Curve Finance. Why? Because it’s our understanding that Egorov is still a key player at Curve, and if he’s not seeing a future for its DeFi project, then what does that say for the DeFi segment in general? Straight talk: this is more about creating a narrative than it is about reporting facts. But that’s sometimes what it takes to keep your head above water.

Egorov’s choice to divest such sizable amounts of $CRV just as the overall market seems to be in recovery mode is curious at best. Since March 24, the founder of Curve Finance has sold off a considerable chunk of his holdings—more than 3 million tokens, to be precise. If you look at a chart of $CRV’s price action, you’ll see that Egorov’s selling has coincided with the local tops in the market—that is, the points where the price subsequently turns down.

Maximizing returns means selling close to local price peaks. Egorov seems to monitor the market closely for optimal exit points. Given the volatility of the crypto market, this strategy may also reflect awareness of potential near-future price fluctuations. Curve’s sales seem more tactical—selling tokens at a time of high prices—than a signal of any kind. Indeed, Curve appears to maintain a prominent role in the DeFi space.

Yet for a large segment of retail investors, news that one of the project’s founders had just sold off millions of dollars worth of $CRV was unsettling. In a still-maturing marketplace, the price of a token can easily get influenced by the actions of prominent figures, for better or for worse.

In this case, the better interpretation of Egorov’s actions is that he was making a large sale for strategic reasons, and that’s it. But then again, the sale’s recentness and its amount do work together to provide a not-so-great-looking picture of retail investor confidence in $CRV.

Even with Egorov’s huge sales, the wider market is still up and running. Ethereum tokens have been experiencing net inflows. This is according to recent data from Nansen. Ethereum keeps pulling in what the investment community refers to as “Smart Money.” That’s a term used to describe institutional investors, hedge funds, and other experienced market participants. They’re perceived as having much better market insight than the average investor. When they come into a market, a lot of times, that’s a very bullish signal.

Interestingly, $CRV has been one of the tokens to have net inflows in the last 24 hours, showing that despite Egorov’s selloff, the token continues to see interest from institutions and traders. This suggests that whatever happens to the price of $CRV in the next 24 to 48 hours, it’s not going to be what’s considered a prelude to a “death spiral”—an asset discontinuity that undermines the value and viability of a decentralized finance protocol. And that’s what makes the recent selling so hard to understand.

Ethereum has sustained its status as the premier platform for decentralized finance (DeFi) applications, and, as a result, large-scale investment is flowing into it. Tokens like $CRV, which power platforms like Curve Finance, are capitalizing on this trend. This Smart Money presence in the market is a stabilizing force because it is with investors who have much deeper pockets and far more focus on long-term growth (and much less concern about the short-term ups and downs that make most of us seasick) that the future of Ethereum and the tokens associated with it seems brightest.

The selloff of $CRV tokens by Egorov presents the market with a real challenge, further adding to uncertainty. The market is attempting to balance flux between what appears to be short-term volatility and a semblance of long-term optimism. Pushing back against that DeFi scene is the kind of pressure that $CRV seems to be under. At this moment, the key question for a lot of investors seems to be this: Will $CRV maintain a position near the leading edge of DeFi tokens while under pressure from Egorov’s liquidation, or is it just being set up for a fall?

For Curve Finance, the development of its decentralized exchange (DEX) and the adoption of its liquidity pools will be crucial for determining the lasting value of $CRV. With the increasing number of decentralized finance (DeFi) protocols, Curve’s ability to adapt and grow seems more important than ever for maintaining $CRV’s relevance.

In general, what happens in the market is that it keeps an eye on the actions of key players such as Michael Egorov. His moves are closely watched because they can provide valuable insight into the future of $CRV and the broader DeFi market. With institutional interest in the space continuing to grow, it has become clear that Ethereum-based tokens such as $CRV will remain an important part of the landscape for both retail and institutional investors in the months ahead.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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