Blockchain data shows that Tron founder Justin Sun purchased about 5 million CRV tokens at an average price of $0.4, helping to protect Curve Finance against a possible bad debt situation stemming from falling token prices that could impact a massive loan tied to its founder.
Let's talk about curve. Crv token is in the news again, with more liquidations happening pretty wild stuff happening on chain. Curve is a foundational piece of the D I ecosystem that has been under pressure after a hack under. It's a underlying token protocol took place earlier in the week that has put downward pressure on the CRV Token. That CRV Token is also underpinning multiple D loans by the founder of Curve Michael Egorov, who is now trying to bail himself out of a liquidity hole in the market. He's been selling OTC RV tokens to Justin. So and others in the D I ecosystem who are right now trying to bail them out, Wendy. I gonna throw the story first to you. Pretty wild stuff happening on China right now. And again, our hero, Justin Sun is here to fix all the problems for us. OK. So this is the thing we haven't heard in an announcement of an announcement of an announcement by Mr Justin. So in quite some time and I feel like he's kind of successfully rebrand from the guy to more of a respected entrepreneur in the crypto industry. I remember seeing like I, I feel like it was a year after the D ID I summer, he became very successful. I want to say it was on in the comp D I um ecosystem, but he had done really, really well. Um He started making more professional moves and so it's very interesting to see him kind of be the hero in this, I guess. Not sure. Um But another thing that I want to kind of comment on is that with defying crypto, you can literally see everything on chain. And a lot of times these types of things happen in traditional finance or in banking and what not, especially with some of the banking collapses, but the general public has no idea what's happening behind the scene because everything is cash or you can't, you can't necessarily track it. But with crypto assets, you can track all of this stuff online in real time, you could see exactly what people are doing, you could see exactly what a lot of these big centralized or decentralized entities are doing. So I think it's very, very interesting and I think this is the exact thing that scares the public servants and scares the banks and scares like old school finance is that they're not going to be able to hide their dirty little secrets anymore. Everything will be public, everything is on chain and I just hope that this situation gets solved because I know that curve is one of the big pillars in the crypto asset industry when it comes to D I and I feel like we need some sort of happy medium between centralized finance and decentralized finance to really make things work and to fix the current monetary system we have. That's pretty predatory. All hail his excellency, Justin son, really remarkable. There's the fed in the real world, but the backstop of the crypto ecosystem appears to be none other than Justin Son. That's pretty remarkable. I think it's kind of crazy that that's where we are here in this present reality. Uh that this is backstabbing a pretty major piece of the D landscape right now. Um You know, Justin son never shies away from controversy, right? He sees as an opportunity to insert himself into the conversation and that is exactly what he is doing, he is doing today, right? He's saying, hey, I can step in here, I can make an investment. It may pay off handsomely. It may go down in flames, but at least I will be part of this conversation and Justin's son to his credit time and time again, does not shy away from the chaos. So you have to offer the tip of the cap to Justin on this one for inserting himself in this. What is pretty much like? Yeah, pretty much a moment of chaos for again, a pretty foundational pillar of the D I world. This is not to say that Justin son is not. Um hugely familiar with D I, he's one of the bigger whales uh when it comes to a lot of these lending platforms. So he knows his way around this stuff. But it is just amazing to see him time and time again emerge when there are headlines to be had. So it's awesome to you will. What are your thoughts? Yeah, a few thoughts here. I mean, this story itself is just emblematic of the place Justin son has held within crypto for quite a while, right? As this whale that comes at the last moment, fixes some problems continues to exist. It's a fun part of crypto just like following Justin. So it's like a full time job almost just to be tracking him. And then on top of this, just look at Michael Grove who is embroiled in a lawsuit right now with some venture capitalists who are actually behind a lot of the funding he got in the early days of curve. So if you go back to 2020 2019 curve was this idea that we can have a simpler way to swap stable coins through a Decentralized Protocol online. In order to do that, they needed this thing called CRV Token and maybe they didn't need it, but it definitely helped out the protocol bootstrap liquidity and that launched. But the way that it launched also helped Michael get a huge payday. He took a lot of this funding that he made from the V CS and from mining his own token and he went around and purchased some mansions with it, which has been posted quite a bit on Twitter in the last 48 hours. Three years later, we're seeing the possible end result of mining your own token and then going out and purchasing real World assets with that token itself. There's a problem. Right. All these things are based on loans, they're based on the token that still allows standing there and he's desperately searching for liquidity in the midst of a market that's falling apart because people are not believing in the Crv Token at the moment. So we'll see how this all ends up, but we've seen this story time and time again where a loan goes bad and can only get worse because the underlying token behind it, the asset behind it is starting to fall apart as well. Wendy, I just want to talk about, um, the loan aspect of this really quick because I know in traditional finance, you see a lot of influencers, you see a lot of people talk about borrow money, borrow money, borrow money, that's how you make more money. And I feel like we don't address the risks of this enough. Like if you want to take a loan out on a house or, or an asset or on money or whatever that looks like, I feel like it's very important to understand what the risks associated are. I feel like it's very to utilize disposable income to where if that loan gets called or something bad happens with it, you're gonna be ok because a lot of people just push this, push this idea, like scared money don't make money and you have to take loans out. And this is how you get rich. You, you know, you buy houses, you refinance them, then you, you know, rinse and repeat. But in reality, people are not practicing risk management, they're not using their money in a safe manner. And when they kind of retort it back to rich people. Well, this is what the rich do. They're not understanding that the rich have a lot more assets than they do and they have a lot more, you know, liquidity to where they can sell something to kind of fix that loan or to repay that loan off. So I feel like it's very important to talk about like the degeneracy that we do see in our industry and that might not necessarily apply to this particular story, but I do like to talk about the risks and talk about the realities of these things, um even on my channel. So I kind of wanted to end it on that.