The post Michael Egorov Denies Curve DAO Liquidation Claims, But Reports Suggest Otherwise appeared first on Coinpedia Fintech News
Curve DAO Token (CRV) has been in the spotlight recently after claims about a major liquidation involving its founder, Michael Egorov. While Egorov has denied the claims, blockchain data hints at a more complex narrative. Meanwhile, CRV has seen a sharp 13% dip, leaving investors in fear of a potential drop ahead.
Egorov Rejects Liquidation Claim
Reports from blockchain analytics firm PeckShield indicate that Egorov’s account faced a significant liquidation event on December 19, involving 918,830 CRV tokens valued at around $882,660.
#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
This development came shortly after Egorov’s recent buyback of 1.08 million tokens for $1.2 million at an average price of $1.114 per token.
However, Egorov has dismissed these claims, suggesting that the tokens in question were connected to the June 10 “uwu” hack. He referred to them as “receipts of Sifu’s promise to repay the hacked funds” rather than legitimate holdings.
This statement has left room for speculation, as the timing of the supposed liquidation coincided with a sharp 12% decline in CRV’s price.
Signs of Hope Amidst Volatility
On the positive side, Curve DAO has made some progress, the token has shown signs of recovery, trading above $1 for the first time since April last year. The launch of Curve Finance’s decentralized stablecoin, Savings-crvUSD (scrvUSD), has played a significant role in this.
The stablecoin has boosted the ecosystem’s scalability and attracted more investors, with staking volumes surging to $839.29 million by late November.
Curve Price Update
Following the liquidation reports, CRV’s price dipped to as low as $0.90, before slightly recovering to $0.945, a 13% drop overall. This decline shows that the market is reacting nervously to the news, even with Egorov’s clarifications.
Looking ahead, if CRV’s price fails to stay above $0.90, it could face a deeper drop, possibly reaching the 0.382 Fibonacci retracement level around $0.83.
On the other hand, if the price rebounds and climbs back above $1, it could indicate a positive turn, with the potential for the token to move toward the $1.25 resistance level.
