Curve Finance’s CRV token saw significant growth in value after many investors mistakenly rushed into it, believing that Paypal was close to completing its purchase of the protocol.
This week there have been several rumors about Paypal's intentions and alleged plans to acquire "CurveFinance”, the well-known decentralized exchange protocol (DEX) of decentralized finance (DeFi). As expected, the news quickly spread throughout the crypto community, prompting the most active investors to quickly invest in the DeFi protocol's CRV token, to take advantage of the opportunity that was presenting itself in the ecosystem.
The sudden and increasing demand from investors for CRV pushed up the price of the token on the market considerably. Shortly after the news broke, CRV went from a value of $2,10 USD to $2,56 USD, growing by more than 20% in a couple of hours.
Source: CoinGecko.
Investors and project enthusiasts began to flaunt the upcoming Paypal purchase on social media, saying it would strengthen the company's crypto operations. However, CurveFinance responded to one of the messages where she was tagged, clarifying that it is not for sale, and that the company they should mention is Curv, a well-known cloud-based high-security financial services firm, offering custody of cryptocurrencies, and digital assets at the enterprise level.
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From $200 to $500 million dollars
After clearing up the confusion, on March 2, sources close to the companies indicated that Curv could be acquired for between $200 and $500 million, but that discussions are still in full swing and it may take a while to reach an agreement and complete the sale. It is important to mention that, despite Curve Finance's mention of Curv, these rumors have not yet been confirmed by the companies at the time of this writing.
If the acquisition is real and goes through, Paypal's intentions are clear, and are related to the expansion of its offering of crypto services, which began in November of last year when the company officially opened its new commercial services with cryptocurrencies to American clients. When the multinational e-commerce company revealed its plans to join the cryptocurrency universe and integrate new financial services with crypto assets, the price of Bitcoin (BTC) It rose to $13.200 USD by then, marking a growth of over 10% and the start of an uptrend that later led the cryptocurrency to break its 2017 high.
Now, at present, several analysts consider that the possible expansion of the cryptocurrency services of this company, despite being strongly centralized, can favor a new rise in the prices of Bitcoin and other important cryptocurrencies in the market, such as Ethereum (ETH) y Litecoin (LTC), and even the token SOMETHING de Algorand, as the staking blockchain recently merged with Curv to offer new innovative solutions that facilitate the entry of traditional investors into DeFi ecosystems.
Meanwhile, CVR fell 6% as investors noticed the confusion, likely caused by the very similar name shared by the DeFi protocol, Curve, and the high-security custody services company, CurvHowever, at the time of this writing, the token appears to be recovering and is holding a price above the $2,45 USD.
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