DEFI

Binance Labs purchases $5 million worth of CRV! Curve is expected to join the BNB chain.

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Binance Labs purchases $5 million worth of CRV! Curve is expected to join the BNB chain.

The DeFi protocol Curve faced a hacking incident earlier this month, triggering a liquidation crisis for Curve's founder Michael Egorov. To prevent a market collapse, many well-known figures in the cryptocurrency community stepped in to help, and Binance Labs seemed to have taken advantage of this opportunity to purchase a large amount of CRV, obtaining the chance for Curve to join the BNB chain.

Binance Labs Buys $5 Million CRV

According to an announcement from Binance Labs, they have invested $5 million to purchase Curve token CRV. Binance Labs stated that this investment highlights their commitment to collaborating with Curve and shaping the future of the DeFi space.

As part of the collaboration, Curve plans to be deployed on the BNB chain to further promote the development of the BNB chain DeFi ecosystem.

Curve Crisis Resolved, Binance Labs Joins Rescue List

In late July, Curve suffered a hack due to a "reentrancy bug," causing a panic-induced drop in the price of CRV, leading to a chain liquidation crisis for Curve founder Michael Egorov.

To address this widespread DeFi crisis and potentially benefit from it, many well-known figures in the crypto community, such as Tron founder Justin Sun and entrepreneur Justin Huang, purchased CRV from Michael Egorov through OTC trades.

This move helped stabilize the price of CRV and the hacker later returned some of the stolen funds, further mitigating the crisis caused by Curve.

The announcement of Binance Labs purchasing a large amount of CRV at this moment is likely related to this crisis event, not only preventing a price drop for CRV but also potentially paving the way for the second-largest DEX on Ethereum to join the BNB chain.