The price of Curve's CRV token fell sharply by 30% due to loan positions tied to the protocol's founder, Michael Egorov, being liquidated. This triggered a wave of selling activity in the market.
Egorov reportedly borrowed nearly $100 million in stablecoins using CRV tokens as collateral. As the value of CRV dropped, the collateralization ratio fell below the minimum threshold, forcing automatic liquidation of his positions.
This incident highlights the risks associated with borrowing against volatile crypto assets.
$CRV
