Coinspeaker Curve DAO (CRV) Token Faces Sharp Drop, Founder’s Assets Liquidated in $882K Blow
Curve DAO token CRV $0.95 24h volatility: 10.3% Market cap: $1.19 B Vol. 24h: $613.65 M recorded a major price drop and the subsequent liquidation of assets tied to Curve Finance founder Michael Egorov. As per a recent post by blockchain security company PeckShield, Egorov’s on-chain address (0x7a16…5428) saw a liquidation of 918,830 CRV tokens on Thursday, valued at around $882,660. This event happened due to the token’s 11.5% price drop in the last 24 hours.
This liquidation unfolded shortly after Egorov made two strategic buybacks. On December 17, he purchased 1.08 million CRV tokens using $1.2 million worth of WETH WETH $3 697 24h volatility: 4.6% Market cap: $10.24 B Vol. 24h: $1.23 B , WBTC WBTC $102 081 24h volatility: 2.0% Market cap: $13.69 B Vol. 24h: $758.32 M , and DAI DAI $1.00 24h volatility: 0.1% Market cap: $3.43 B Vol. 24h: $152.52 M at an average price of $1.114. Soon after, he acquired an additional 146,048 CRV for $164,000 worth of stablecoins USDT USDT $1.00 24h volatility: 0.1% Market cap: $140.57 B Vol. 24h: $117.54 B and DAI, at an average price of $1.123. These marked his first major purchases since a similar liquidation event in June.
Despite these efforts, the market’s swift downturn triggered a liquidation of Egorov’s leveraged position. In response, Egorov has stated that the liquidated tokens were linked to a June hack. He claimed they were “receipts of Sifu’s promise to repay the hacked funds” rather than legitimate holdings. This clarification, however, has done little to alleviate concerns about CRV’s broader market performance.
CRV Token Struggles
Meanwhile, CRV’s value continues to decline, with the token trading at $0.9413 — a sharp 11.5% drop within a day. Currently ranked 90th among cryptocurrencies by market capitalization, CRV has a market cap of $1.18 billion and a trading volume of $512 million.
Launched in August 2020, the token has faced a predominantly downward trajectory, with its current value down 98% from its all-time high of $60.50. Despite a broader crypto market uptrend over the past year, which saw CRV rise 53%, bearish sentiment has persisted.
Notably, the continued downfall in CRV value is also due to its July 2023 hack. Last year, Curve suffered a $73.5 million exploit targeting its stable pools due to a vulnerability in its Vyper programming language. However, a major chunk of the stolen funds was eventually recovered.
Optimism despite Bearish Sentiment
CRV’s recent price action underscores the token’s weak position in the current market. Yet, discussions on social media platform X reveal a segment of traders who remain optimistic about a potential rebound.
The recent liquidation event serves as a reminder of the high stakes in crypto markets, where even industry leaders are not immune to market pressures. On X, analysts have noted the dangers of maintaining such high-risk positions, particularly in volatile market conditions. Whether CRV can recover from its latest setback remains to be seen.
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Curve DAO (CRV) Token Faces Sharp Drop, Founder’s Assets Liquidated in $882K Blow
