Binance Labs, the venture capital and incubator division of the cryptocurrency exchange Binance, has announced that it will be investing $5 million in Curve DAO (CRV) tokens. This strategic partnership will also see Curve Finance deploy to the Binance-backed BNB Chain.
Yi He, co-founder of Binance and head of Binance Labs, has stated that Binance Labs pledges its full support to Curve through investment and a strategic partnership, following the recent developments that have had an impact on the protocol. He added that the collaboration is the beginning of a long-term partnership to advance the development of the DeFi ecosystem.
The investment appears to be part of recent OTC deals done by Curve founder Michael Egorov with prominent figures in the crypto space. Justin Sun, the founder of Tron, purchased 5 million CRV tokens for $2 million, while Huobi co-founder Jun Du purchased 10 million. According to on-chain data gathered by Spotonchain on Dune Analytics, Egorov has sold more than 156 million CRV tokens so far for a total of $46.4 million.
DeBank suggests that these transactions are strategically intended to reduce 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.
