Someone Lost Millions of Dollars Due to the Drop in Altcoin: Who Could It Be?

An altcoin investor suffered a loss of millions of dollars because the collateral he used lost value.

Curve DAO (CRV) token, which underlies the Curve Finance ecosystem, has lost more than 29% in value in the last 24 hours.

Millions of dollars were deleted

According to the post of Blockchain analysis platform Lookonchain, a position on the Fraxlend platform was closed today morning.

Developed by Frax Finance, Fraxlend is a money market platform where loans can be borrowed between ERC-20 token pairs.

“As the CRV price dropped, someone liquidated 10.58 million CRV ($3.3 million) on Fraxlend,” Lookonchain said.

Curve may be the founder of DAO

Curve DAO (CRV) was one of the cryptocurrencies that suffered the heaviest blow on a daily basis. According to CoinGecko data, CRV lost more than 40% of its value on a weekly basis.

Cryptocurrency followers suspect that the investor liquidated on Fraxlend may be Michael Egorov, the founder of Curve Finance.

Egorov received stablecoin debt from various DeFi platforms by using CRV as collateral. “Egorov currently holds 111.87 million CRV ($33.87 million) in collateral and $20.6 million in debt across four different platforms,” Lookonchain said.

Blockchain analysis firm Arkham announced that Egorov's positions could be liquid if the CRV price dropped by approximately 10%.