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CRV token drops over 34% after Curve.fi founder New Broke liquidates
CRV, Curve.fi’s native token, is one of the biggest losers in the cryptocurrency market crash. The value of the token fell by more than 34% after news broke that Curve.fi founder Michael Egorov was facing liquidation. This drastic drop in prices and the news of the liquidation of its founder have raised doubts and fears among investors about CRV’s development and ongoing projects.
At its lowest point on Thursday, CRV fell below $0.236, demonstrating the severe impact of the market crash. The token has since rebounded slightly, settling at $0.261.
THE $CRV the price dropped up to 34% (3H) after the news of #Curvefi The founder (Michale Egorov) in liquidation broke out!
Here are the highlights of the chain 👇
1. Michael Egorov (@newmichwill) currently has 139 million $CRV ($37 million) in collateral and $27 million in debt on 3… pic.twitter.com/tJLtmLUqLo— Spot on the chain (@spotonchain) June 13, 2024
The liquidation of the founder triggers panic
According to Spot On Chain, a blockchain analytics platform, the news of Michael Egorov’s liquidation was a major factor in CRV’s sharp decline. Egorov currently holds 139 million CRV tokens, worth approximately $37 million, as collateral.
Its debt, totaling $27 million across three platforms and wallets, has added significant financial strain. This has increased pressure on the CRV token, pushing its value even lower.
It is not the first time that the news of the liquidation of the founder of Curve has arrived. On April 14, Wu Blockchain reported that Curve founder Michael Egorov was liquidated when the CRV token fell to $0.42. This event brought Egorov to the brink of liquidating 371 million CRV (approximately $156 million) used as collateral for stablecoin loans.
Curve founder Michael Egorov also faced liquidation of his loan positions as CRV fell to $0.42. Michael mortgaged a total of 371 million CRV (approximately $156 million) across 5 addresses across 6 lending platforms to borrow $92.54 million in stablecoins. The health rate has dropped to around…
— Wu Blockchain (@WuBlockchain) April 14, 2024
In total, nearly $128 million worth of crypto collateral was liquidated on DeFi lending platforms. In particular, more than 24 million dollars have been liquidated on Aave alone
Whale movements in response
In response to the news, significant movements were observed on the chain. An unknown whale with a wallet address of i0xF07 recently deposited 29.62 million CRV token, worth $7.68 million, to Binance.
This move is believed to be due to the liquidation of Fraxlend, demonstrating the broader market impact of Egorov’s liquidation.
Ray of hope
On the other hand, Binance has easily integrated Curve Finance’s token, CRV, into Arbitrum One and Optimism. In this way, Binance aims to provide its users with faster and cheaper transactions critical in the ever-evolving DeFi space, using the features provided by Arbitrum One and Optimism.
Binance Completes Curve (CRV) Integrations on Arbitrum One and Optimism Networks, Opens Deposits and Withdrawals https://t.co/jxIS1OjYMy
— Curva Finanza (@CurveFinance) June 12, 2024