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CRV Price Plunges 25% Following Curve Finance Founder’s Multimillion Liquidation
Curve Finance founder Michael Egorov was liquidated on several multi-million dollar positions, causing a 25% drop in the price of CRV.
Michael Egorov, the founder of Curve Financing, was apparently liquidated on several multi-million dollar positions, causing a sharp drop in the price of the CRV token. The token’s price fell 25% on June 13, with losses reaching up to 30% at one point. As of press time, CRV is trading at an all-time low of $0.25, according to CoinGecko data.
Egorov’s liquidations are due to high-stakes positions backed by CRV as collateral, Lookonchain reports, adding that the Curve Finance founder has over 111 million CRV tokens used as collateral and over $20 million in debts on several platforms, including Inverse, Frax Finance, and UwU Lend.
In response to the sharp drop in CRV, Frax Finance said in a post that “there is no bad debt on Fraxlend due to our partial liquidation, DDR and isolated loan design.” According to data According to blockchain forensics firm Arkham Intelligence, three of Egorov’s accounts constitute more than 90% of the crvUSD borrowed on the protocol.
Meanwhile, centralized cryptocurrency exchanges are seeing a surge in CRV deposits, with their CRV balances hitting an all-time high, increasing by 57%, as underlines by Ki Young Ju, founder of CryptoQuant.
Founded in 2020, Curve Finance has raised millions from its backers, with the aim of facilitating efficient stablecoin trading through its automated market maker platform. The project was backed by Binance Labs, Platinum Capital VC, WhiteBlock Ventures and Cluster Capital, among others, according to PitchBook data.