Curve DAO Token (CRV) faced a sharp price drop, leading to the liquidation of CurveFI founder Michael Egorov’s account. Recent reports showed that he lost 918.83K tokens worth $882.66K amid the 12% decline in CRV’s value over 24 hours. This liquidation highlights the risks of leveraging in volatile markets. In addition, the steep price fall reflects the challenges traders face during turbulent market conditions.
CurveFI Founder’s CRV Position Liquidated After Recent Buyback
On December 19, CurveFI founder Michael Egorov faced a major liquidation event, losing 918.83K CRV worth $882.66K. This comes just after his recent buyback, where he acquired 1.08 million tokens for $1.2 million at an average price of $1.114. The buyback occurred two days before the liquidation, marking his first significant purchase of Curve DAO Token since a similar event in June 2024.
According to Spot on Chain analysis, Michael Egorov’s buyback took place on December 17, as he sought to strengthen his position. However, just days later, the price of Curve Dao Token plunged 12% within 24 hours triggering a liquidation event. PeckShield reported the liquidation of Egorov’s position, amounting to 918.83K CRV, worth approximately $882.66K.
#PeckShieldAlert #Liquidation Michael Egorov-labeled address (0x7a16…5428) has been liquidated for 918.83K $CRV (totaling $882.66K). pic.twitter.com/ZXehpFZT81
— PeckShieldAlert (@PeckShieldAlert) December 19, 2024
Despite his attempt to increase his holdings in Curve DAO Token, the sudden price drop triggered margin calls, leading to liquidation. This serves as a stark reminder of the perils of maintaining large leveraged positions in an unpredictable market. Analysts warn that this event should serve as a cautionary tale for other investors considering leverage in a declining market.
However, Egorov clarified that the tokens were stolen from him during the June 10 “uwu” hack. He described the liquidated tokens as “receipts of Sifu’s promise to repay the hacked funds,” rather than legitimate CRV tokens. Despite that, this development has also fueled concerns over Curve DAO Token’s broader performance, as the token saw a 7.8% drop shortly after Michael Egorov’s buyback.
Token Faces Continued Decline Amid Market Pressure
CRV token price has dropped by 13% in the past 24 hours, trading at $0.9375 after the latest development by Michael Egorov. It hit a 24-hour low of $0.90 and a high of $1.07, reflecting significant price volatility.
With a market cap of $1.17 billion and $536 million in trading volume, CRV’s recent performance highlights ongoing bearish sentiment. Traders remain cautious as the token struggles to regain stability following the liquidation event.
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