Curve (CRV) encountered a substantial price drop, plummeting by as much as 34% in just three hours. The abrupt decline was sparked by reports of a major liquidation event involving Michale Egorov, the founder of Curve Finance. Investors and market observers were taken aback as news of the liquidation circulated on social media and various cryptocurrency news outlets.
The price of $CRV tumbled by up to 34% following the announcement of the liquidation of #Curvefi founder Michale Egorov! Here are the key on-chain details
According to on-chain data, Michale Egorov, also known as newmichwill in the crypto community, holds a significant amount of 139 million CRV tokens, valued at around $37 million, which are being used as collateral. Egorov currently faces a debt of $27 million spread across three different platforms and wallets. PeckShieldAlert revealed that an address linked to Egorov was forcefully liquidated, resulting in a loss of approximately 20.2 million CRV on the UwULend lending platform, with the liquidation conducted by the entity sifuvision.eth.
Whale Movements and Market Impact
In a related development, a notable transaction involving a whale identified as 0xF07 was observed, moving 29.62 million CRV tokens (equivalent to about $7.68 million) to Binance. This maneuver is believed to be a response to the liquidation pressures on the Fraxlend lending platform, highlighting the ripple effect of large holder liquidations on the broader market.
Following these market shocks, the community surrounding the impacted platforms came together to stabilize the situation. A significant portion of the debt has been repaid, including 3.52 million DAI, 233,819 crvUSD, 4.23 million USDT, and 481.36 wETH (valued at $1.73 million), totaling up to $9.71 million. Moreover, all outstanding bad debt in the wETH (Wrapped Ethereum) market has been resolved, as indicated by the latest updates from community channels.
