In a fresh development, crypto exchange Binance’s venture capital and incubator arm Binance Labs will be investing $5 million in Curve DAO (CRV) tokens.
The move will see Curve Finance deployed on the Binance-backed BNB chain. The collaboration was announced by Binance co-founder Yi He, who also heads Binance Labs. The investment deal appears to be a part of the over-the-counter transactions undertaken by Curve Finance chief Micheal Egrove with leading crypto platforms. Recently, Tron founder Justin Sun purchased 5 million CRV tokens in a $2-million deal. Huobi Global co-founder Jun Du also hit the headlines after he purchased 10 million CRV tokens.
Curve DAO was launched in 2020 as a decentralized exchange for stablecoins and to give updates about live cryptocurrency prices. It leverages the automated market maker for managing liquidity. The same year, Curve DAO rolled out its native cryptocurrency CRV. The exchange uses Aragon – an Ethereum-based tool – for connecting multiple smart contracts utilized for depositing liquidity.
According to reports, Yi He has said that Curve Finance has Binance Labs’ full support, especially in the wake of the recent hack that the latter suffered. Earlier in August, Curve DAO lost over $62 million in a hack, which led to a ripple effect throughout the market and impacted the performance of several Top 10 cryptocurrencies. Yi He also stated that Binance Labs sees the deal as a new beginning and is looking forward to working together in the future to develop the DeFi ecosystem.
As per data collected by Spotonchain, Egrove has managed to sell around 156 million CRV tokens in the recent past for a sum of $46.4 million. There are reports that these transactions are strategically planned to lower the liquidation risks that Egrove might face due to a $50-million stablecoin loan that he had taken earlier.
About Binance
Binance is a leading crypto trading platform with a native cryptocurrency called the BNB token. The platform was initially built on the Ethereum network but was later shifted to the BNB blockchain. The exchange has over 350 cryptocurrencies listed on it and has more than 150 million users
Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
