The price of $CRV plummeted by up to 34% within three hours following the news that Curve Finance founder Michael Egorov had been liquidated. On-chain data reveals several critical points about the situation.
The $CRV price dropped up to 34% (3H) after the news of the #Curvefi founder (Michale Egorov) being liquidated broke out!
Here are the on-chain highlights 👇
1. Michale Egorov (@newmichwill) currently has 139M $CRV ($37M) in collateral and $27M in debt across 3… pic.twitter.com/tJLtmLUqLo— Spot On Chain (@spotonchain) June 13, 2024
Michael Egorov (@newmichwill) currently holds 139 million $CRV ($37 million) as collateral and has $27 million in debt spread across three different platforms and wallets. In response to the liquidation on Fraxlend, Whale 0xF07 deposited 29.62 million $CRV ($7.68 million) to Binance.
Additionally, another 6 million $CRVUSD was added to extend his liquidation. These tokens were swapped from 6 million $USDT, which he had withdrawn from Binance.
Another 6M $CRVUSD is added to extend his liquidation
Those tokens are swapped from 6M $USDT which he withdrew from Binance in the past 30 minutes. pic.twitter.com/q8mftr8Bz2
— Spot On Chain (@spotonchain) June 13, 2024
On-chain reports from Spotonchain highlighted that Egorov has been selling $CRV and $UWU to manage his liquidation risks. In the past few hours, he has:
- Swapped approximately 3.1 million $CRV for 810,000 $USDT
- Swapped 2,100 $UWU for 5,680 $CRVUSD
- Swapped 10,300 $UWU for 27,000 $USDT
All $USDT was subsequently converted to $CRVUSD to extend his liquidation.
Michael Egorov is selling $CRV and $UWU to extend the liquidation.
In the past 3 hours:
– swapped ~3.1M $CRV to 810K $USDT
– swapped 2.1k $UWU to 5.68K $CRVUSD
– swapped 10.3K $UWU to 27K $USDTThen he converted all $USDT to $CRVUSD and extended his liquidation.
More details:… https://t.co/yQX81F1dFD pic.twitter.com/h5IG1h12im
— Spot On Chain (@spotonchain) June 13, 2024
Official Statement Calms The Nerve For $CRV Investors
In an official announcement on X, Egorov addressed the situation, stating:
“The Curve Finance team and I have been working to solve the liquidation risk issue which happened today. Many of you are aware that I had all my loans liquidated. The size of my positions was too large for markets to handle and caused 10 million of bad debt. Only the CRV market on lend.curve.fi (where the position was the biggest) was affected. I have already repaid 93% and intend to repay the rest very shortly. This will help users avoid suffering from this situation.”
The Curve Finance team and I have been working to solve the liquidation risk issue which happened today.
Many of you are aware that I had all my loans liquidated. Size of my positions was too large for markets to handle and caused 10M of bad debt. Only CRV market on…
— Michael Egorov (@newmichwill) June 13, 2024
Egorov’s proactive measures and communication aim to mitigate the impact on users and stabilize the $CRV market following the liquidation event.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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