CRV price plunges 25% following Curve Finance founder’s multi-million liquidation

As an analyst with extensive experience in the crypto industry, I find Michael Egorov’s liquidation on multiple multi-million dollar positions deeply concerning. The sudden decline in CRV‘s price following this news is a stark reminder of the risks inherent in decentralized finance (DeFi) and the potential consequences of overleveraging.


As a crypto investor, I’ve observed a significant setback for Curve Finance’s founder, Michael Egorov. Unfortunately, he experienced liquidations on some substantial CRV positions, leading to a sizable price drop of approximately 25%.

Michael Egorov, the founder of Curve Finance, has reportedly seen large-scale liquidations worth millions of dollars, leading to a significant drop in the value of the CRV token. The token’s price fell by approximately 25% on June 13, reaching a low of around 30% decrease at one point. As of now, CRV is trading at its lowest recorded price of $0.25 based on CoinGecko data.

The founder of Curve Finance, Michael Egorov, is facing liquidation with a total collateral value of $111.87 million in CRV (approximately $33.87 million) and a debt amounting to $20.6 million across four different platforms.— Lookonchain (@lookonchain) June 13, 2024

As a crypto investor, I’ve noticed some recent developments regarding the liquidations of Egorov’s high-stakes positions. According to Lookonchain, these liquidations are connected to CRV tokens serving as collateral for those positions. Egorov, being the founder of Curve Finance, holds over 111 million CRV tokens that have been pledged as security. Furthermore, there’s a debt obligation exceeding $20 million spread across various platforms like Inverse, Frax Finance, and UwU Lend.

In reaction to CRV‘s significant drop, Frax Finance stated in a recent post on X that “there is no bad debt on Fraxlend thanks to our partial liquidations, Dynamic Debt Repayment, and segregated lending system.” Based on information from blockchain investigation firm Arkham Intelligence, three of Egorov’s accounts are responsible for borrowing over 90% of the crvUSD from the protocol.

As a crypto investor, I’ve noticed a significant increase in CRV deposit activity on centralized cryptocurrency exchanges recently. The balances held by these exchanges have hit new all-time highs, with a staggering 57% surge reported by CryptoQuant’s founder Ki Young Ju.

Established in 2020, Curve Finance attracted millions in funding from investors. Their mission is to simplify the process of trading stablecoins using their automated market maker platform. Notable supporters include Binance Labs, Platinum Capital Ventures, WhiteBlock Ventures, and Cluster Capital, as indicated by PitchBook’s data.

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2024-06-13 10:04