Curve (CRV) experienced a significant price plunge, falling up to 34% within three hours. The sudden drop was triggered by news that Curve Finance founder Michale Egorov was undergoing a significant liquidation event. Market watchers and investors were surprised as details of the liquidation spread across social media and cryptocurrency news platforms.
The $CRV price dropped up to 34% (3H) after the news of the #Curvefi founder (Michale Egorov) being liquidated broke out!Here are the on-chain highlights 👇1. Michale Egorov (@newmichwill) currently has 139M $CRV ($37M) in collateral and $27M in debt across 3… pic.twitter.com/tJLtmLUqLo
— Spot On Chain (@spotonchain) June 13, 2024
According to on-chain data, Michale Egorov, known in the crypto community as newmichwill, has substantial holdings with 139 million CRV tokens, valued at approximately $37 million, used as collateral. Egorov is currently facing a debt of $27 million spread across three different platforms and wallets. PeckShieldAlert reported that an address associated with Egorov was forcibly liquidated, losing around 20.2 million CRV on the lending platform UwULend. The liquidation was carried out by the entity known as sifuvision.eth.
Whale Movements and Market Impact
In a related development, a significant transaction was noted involving a whale, identified as 0xF07, who moved 29.62 million CRV tokens (worth around $7.68 million) to Binance. This move is believed to respond to the liquidation pressures on the lending platform Fraxlend, illustrating the cascading effect of large holder liquidations on the broader market.
https://t.co/j8PIg1XISm
— PeckShieldAlert (@PeckShieldAlert) June 13, 2024
After these market jolts, the community around the affected platforms rallied to stabilize the situation. A significant amount of debt has been repaid, including 3.52 million DAI, 233,819 crvUSD, 4.23 million USDT, and 481.36 wETH (worth $1.73 million), totaling up to $9.71 million. Additionally, all outstanding bad debt in the wETH (Wrapped Ethereum) market has been cleared, as confirmed by the latest updates from community channels.
