CRV drops 13% amid liquidation claims involving founder Egorov.
Egorov denies allegations, linking tokens to prior “uwu” hack receipts.
Curve DAO Token (CRV) has faced a turbulent period marked by significant price volatility and controversy surrounding its founder, Michael Egorov. Reports from blockchain analytics firm PeckShield reveal that Egorov’s account was liquidated on December 19, with 918,830 CRV tokens worth approximately $882,660 sold off. This event followed Egorov’s recent buyback of 1.08 million CRV for $1.2 million at an average price of $1.114 per token.
The liquidation comes amid a sharp 12% drop in CRV’s price within 24 hours, leading to heightened investor anxiety. Despite the reports, Egorov dismissed the claims, attributing the liquidated tokens to the June 10 “uwu” hack. He described them as “receipts of Sifu’s promise to repay the hacked funds” rather than legitimate holdings. However, the timing of the liquidation and subsequent price drop has fueled further speculation.
CRV Faces a Hard Time
CRV has struggled to maintain stability, dipping to $0.90 before recovering slightly to $0.945, marking a 13% overall decline. Analysts warn that failing to hold above $0.90 could lead to a deeper drop, potentially hitting the 0.382 Fibonacci retracement level at $0.83. Conversely, a rebound above $1 could signal a recovery, with the token possibly aiming for resistance at $1.25.
Despite the challenges, there are signs of hope for Curve DAO. The recent launch of its decentralized stablecoin, Savings-crvUSD (scrvUSD), has bolstered ecosystem activity, with staking volumes surging to $839.29 million by late November.
CRV’s recent performance underscores the risks of leveraging in volatile markets and the broader challenges facing the token. As investors tread cautiously, the token’s future hinges on its ability to recover amidst market pressure and lingering doubts surrounding Egorov’s claims.
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