The founder of Curve Finance, Michael Egorov, got liquidated on several multi-million dollar positions, causing a 25% drop in the price of CRV.
Michael Egorov, the founder of Curve Finance, has seemingly been liquidated on multiple multi-million dollar positions, causing a sharp decline in the price of the CRV token. The token’s price plummeted by 25% on Jun. 13, with losses reaching up to 30% at one point. As of press time, CRV is trading at an all-time low of $0.25, according to data from CoinGecko.
The #Curvefi founder(Michale Egorov) is being liquidated!He currently has 111.87M $CRV($33.87M) in collateral and $20.6M in debt on 4 platforms.https://t.co/WM1nW8JKwU pic.twitter.com/huwgetBXuS
— Lookonchain (@lookonchain) June 13, 2024
Egorov’s liquidations are due to high-stake positions backed by CRV as collateral, Lookonchain reports, adding that the Curve Finance founder has over 111 million CRV tokens used as collateral and more than $20 million in debt across several platforms, including Inverse, Frax Finance, and UwU Lend.
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In response to CRV’s sharp decline, Frax Finance said in an X post that “there is zero bad debt on Fraxlend due to our partial liquidation, DDR, isolated lending design.” According to data from blockchain forensics firm Arkham Intelligence, three of Egorov’s accounts constitute over 90% of the borrowed crvUSD on the protocol.
Meanwhile, centralized cryptocurrency exchanges are seeing a surge in CRV deposits, with their CRV balances reaching an all-time high, increasing by 57%, as pointed out by CryptoQuant’s founder Ki Young Ju.
Founded in 2020, Curve Finance raised millions from its backers, aimed at facilitating the efficient trading of stablecoins through its automated market maker platform. The project was backed by Binance Labs, Platinum Capital VC, WhiteBlock Ventures, and Cluster Capital among others, according to data from PitchBook.
Read more: Justin Sun, other crypto investors buy CRV token in attempt to help Curve Finance