- DWF Labs deposited its entire Curve Finance (CRV) holdings on the Binance.
- The firm transferred 12.5 million CRV, equivalent to $4.12 million, on the exchange.
- DWF Labs’ actions triggered bearish sentiment among the CRV community.
DWF Labs, a Web3 investment firm, recently moved all its Curve Finance (CRV) tokens to Binance, triggering speculation of a sell-off. Blockchain analytics platform Spot On Chain reports that DWF Labs transferred 12.5 million CRV, worth $4.12 million, to the centralized exchange over the past two days.
Spot On Chain estimates that if DWF Labs sells these tokens, it would lose around $875,000 on the investment, a 17.5% loss after holding the tokens for about a year. The firm bought the tokens from Curve Finance’s founder, Michael Egorov, at an OTC price of $0.4 during last year’s liquidity crisis.
Interestingly, DWF Labs made these CRV deposits after Egorov requested a portion of the Curve DAO’s Community Fund to support protocol development and secure funding for Swiss Stake AG, the company behind many of Curve’s components. Egorov stated he would use the funds to maintain and grow Swiss Stake’s 25-person team and fuel research and development.
A section of the crypto community considers DWF Labs’ recent action a protest against Egorov’s request. Some CRV community members criticized the founders’ move and promised to vote against it. One such member said he would vote against the proposal because he does not see a clear roadmap and detailed fund expenditure.
Meanwhile, crypto traders might interpret a potential DWF Labs CRV liquidation as a bearish signal for the token. TradingView data shows that CRV’s price stalled after a strong rally over the past four days. Last Tuesday’s 17% surge set CRV up for a break above the significant resistance of around $0.3432. The rally stalled following the sell-off speculation, leading to a price pullback that has seen CRV trade for $0.3272 at the time of writing, according to data from TradingView.
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