CRV price dropped 40%, millions of dollars liquidated, Curve founder faces a huge blow
The native token CRV of Curve Finance suddenly plummeted in value, causing significant losses for bullish investors and the platform's founder Michael Egorov. According to blockchain analysis platform, Egorov's CRV is facing a total liquidation of 140 million US dollars.
In a social media post on X (formerly Twitter), Arkham confirmed that due to the price of CRV falling below its liquidation threshold, Egorov's six-figure borrowing position has been liquidated in five protocols.
Egorov's account generated over 1 million US dollars in bad debt on Curve's Llamalend, and he managed to settle it by obtaining 6 million USDT. In addition, Egorov experienced a liquidation of 5 million US dollars on UwU Lend, while repaying on Inverse to mitigate further losses.
On June 13, Curve contributor Saint Rat revealed that the protocol has generated a bad debt of $11.5 million, which can be resolved if the price of CRV rises to $0.33. Egorov stated that he is committed to working with the Curve Finance team to address the bad debt issue and protect users from its impact.
To address the crisis, Egorov suggested destroying 10% of the total supply of CRV to stabilize the token price. He also announced that active voters will receive a three-month deposit bonus boost on all Curve platforms, aiming to incentivize participation and strengthen the ecosystem. Interestingly, this recent incident is not the first time Egorov has faced a large-scale liquidation. Last year, he borrowed a $60 million loan from Aave, which carries a risk of default once liquidated.
To address this issue, the risk management firm recommends freezing Aave's v2 CRV market to minimize protocol risk. In a subsequent private transaction, Egorov sold 106 million CRV tokens for $46 million to repay most of his debts on Aave and other lending platforms, ultimately using a $11 million USDT deposit to settle his debt with Aave in September.
Before the market crash, the trading price of CRV was $0.3582. However, the token experienced a big dump, dropping nearly 40% to a historical low of $0.2220. Since then, the token has recovered and is currently trading at $0.2880. This recovery helps mitigate the losses incurred within the past 24 hours, reducing it to 22%.
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CRV price dropped 40%, millions of dollars liquidated, Curve founder faces a huge blow
The native token CRV of Curve Finance suddenly plummeted in value, causing significant losses for bullish investors and the platform's founder Michael Egorov. According to blockchain analysis platform, Egorov's CRV is facing a total liquidation of 140 million US dollars.
In a social media post on X (formerly Twitter), Arkham confirmed that due to the price of CRV falling below its liquidation threshold, Egorov's six-figure borrowing position has been liquidated in five protocols.
Egorov's account generated over 1 million US dollars in bad debt on Curve's Llamalend, and he managed to settle it by obtaining 6 million USDT. In addition, Egorov experienced a liquidation of 5 million US dollars on UwU Lend, while repaying on Inverse to mitigate further losses.
On June 13, Curve contributor Saint Rat revealed that the protocol has generated a bad debt of $11.5 million, which can be resolved if the price of CRV rises to $0.33. Egorov stated that he is committed to working with the Curve Finance team to address the bad debt issue and protect users from its impact.
To address the crisis, Egorov suggested destroying 10% of the total supply of CRV to stabilize the token price. He also announced that active voters will receive a three-month deposit bonus boost on all Curve platforms, aiming to incentivize participation and strengthen the ecosystem. Interestingly, this recent incident is not the first time Egorov has faced a large-scale liquidation. Last year, he borrowed a $60 million loan from Aave, which carries a risk of default once liquidated.
To address this issue, the risk management firm recommends freezing Aave's v2 CRV market to minimize protocol risk. In a subsequent private transaction, Egorov sold 106 million CRV tokens for $46 million to repay most of his debts on Aave and other lending platforms, ultimately using a $11 million USDT deposit to settle his debt with Aave in September.
Before the market crash, the trading price of CRV was $0.3582. However, the token experienced a big dump, dropping nearly 40% to a historical low of $0.2220. Since then, the token has recovered and is currently trading at $0.2880. This recovery helps mitigate the losses incurred within the past 24 hours, reducing it to 22%.
(Data Source: Ronaldo Marquez)