The recent alleged acquisition of crypto custodian Curve by PayPal shows the payment giant’s increased interest in the cryptocurrency industry. But that decision has also jolted the price of an unrelated token CRV, as many investors mistakenly thought they are the same. It gained more than 30% barely 24 hours after PayPal’s news broke out.
Curv was also integrated into the top DeFi protocol Compound last year. But PayPal’s acquisition tops all the developments that have so far occurred in the platform.
The crypto community responded to the news of Curv’s acquisition by rushing to go long on the CRV, as many people mistakenly thought it’s the token for Curv. As a result, the token rose by more than 10% from $2.30 to $2.60. The token is still rising as of the time of writing.
Additionally, Curv’s official Twitter account has been mistakenly tagged repeatedly by numerous articles mentioning the PayPal acquisition.
The Curve DAO (CRV) token has now gained more than 24% since the news about PayPal’s acquisition of another company Curv broke out.
Similar confusions in the past
This is not the first time investors and traders have confused an investment for another token. The situation bears the same similarity with the recent hike of the Signal token. After Elon Musk advised his followers to use the private messaging app Signal, many users flocked to a different stock, which increased the stock by more than 1,000%.
It also happened in January when some traders mistakenly rallied on Tanzanian Gold Corporation (TRX) after the r/WallStreetBets group pulled massive support for Justin Sun’s Tron cryptocurrency (also called TRX).
Following news of the acquisition, PayPal’s stock has slightly retracted. The acquisition will not surprise those following the story, as the payment giant had tried to buy the custody firm last year, but it didn’t materialize.
The report of the acquisition stated that PayPal bought the company for between $200 million and $300 million.
CRV reverses rally
When traders realized their mistake, CRV quickly reversed the rally and shed most of its gains. However, publicity is still a good thing for the DeFi protocol. According to data aggregator, CRV is now among the best-performing Ethereum-based assets this year.
PayPal shows an increased interest in cryptocurrency
PayPal enabled crypto purchases on its portal towards the end of last year. Due to an unforeseen hike in demand, the payment giant had to raise the buy limits to $15,000 from $10,000 in November.
PayPal has also announced an extension of cryptocurrency buying and selling to Venmo and U.K users this year.
However, the company provides limited crypt offerings, as users do not have control over their private keys. As a result, some observers think the acquisition of Curve could help to change that since the new platform handles the storage of digital assets.
Last year, Curve raised $23 million to expand its operations for the increased institutional demand for Bitcoin. Digital Currency Group and Coinbase Ventures were among the top investors.