Crypto News

Curve Finance Founder’s Liquidation Triggers 34% $CRV Price Drop: On-Chain Highlights

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.

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 These tokens were swapped from 6 million $USDT, which he had withdrawn from Binance.

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.

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 (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.”

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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