Binance Labs commits to a $5M investment in Curve DAO tokens
- Binance Labs is offering support to Curve after the recent hack.
- The investment is part of recent OTC deals done by Curve founder with notable figures in the crypto space.
- Curve Finance is later expected to deploy to the Binance-backed BNB Chain.
The venture capital and incubator division of the cryptocurrency exchange Binance, Binance Labs, has agreed to invest $5 million in Curve DAO (CRV) tokens.
The collaboration, which will also see Curve Finance deploy to the Binance-backed BNB Chain, was announced by Yi He, co-founder of Binance and head of Binance Labs.
The investment seems to be a part of recent over-the-counter (OTC) transactions that Curve founder Michael Egorov conducted with prominent individuals in the cryptocurrency industry. Among them, Justin Sun, the founder of Tron, purchased 5 million CRV tokens for $2 million, while Huobi co-founder Jun Du purchased 10 million.
Binance support to Curve DAO after the hack
Yi He has stated that Binance Labs pledges its full support to Curve through investment and a strategic partnership in light of the recent developments that have had an impact on the protocol. The Binance co-founder went ahead to state that they see this collaboration as a beginning and are eager to continue working together to advance the development of the DeFi ecosystem.
According to on-chain data gathered by Spotonchain on Dune Analytics, Michael Egorov has sold more than 156 million CRV tokens so far for a total of $46.4 million. According to DeBank, the transactions appear to be strategically intended to lessen the potential liquidation risks that Egorov may face across numerous decentralised finance platforms as a result of a $50 million stablecoin loan he had taken earlier.
