Justin Sun, the founder of the Tron blockchain, has taken action to protect Curve Finance founder Michael Egorov from a possible bad debt situation caused by falling CRV token prices. Sun purchased 5 million CRV tokens from a wallet tagged “Curve.fi Founder” at an average price of $0.4, amounting to just over $2.3 million. Sun tweeted, “Excited to assist Curve! As steadfast partners, we remain committed to providing support whenever needed.” Several other DeFi players also stepped in to purchase discounted CRV tokens via OTC trading. Egorov sold a total of 39.25 million CRV tokens via OTC and received $15.8 million.
The Sunday exploit that drove down the price of the CRV token put a $168 million stash of Egorov’s money at risk of being liquidated, creating bearish sentiment for the tokens among traders. Liquidation of such a large position could have put pressure on other DeFi protocols. However, wealthy participants like Sun have stepped up to protect their own outsized token holdings from being hit.