TL;DR
- Michael Egorov, founder of Curve Finance, suffered an $882,000 liquidation in CRV due to a 12% drop in its price in 24 hours.
- This liquidation adds to a history of losses, including a $140 million liquidation in June, related to an attack on the UwU Lend platform.
- Despite the drop, CRV has grown 116% in the last month, demonstrating its long-term potential despite market volatility.
Michael Egorov, founder of Curve Finance, has been once again affected by a liquidation, this time for a total of $882,000 in CRV tokens, after the price of the cryptocurrency dropped by 11% in just 24 hours.
The liquidation occurred after Egorov invested $1.2 million in more CRV, buying the tokens at an average price of $1.11, but the value of the cryptocurrency quickly dropped to $0.91, triggering the liquidation process.
The Loss History of Curve DAO (CRV)
This episode adds to a history of losses for Curve’s founder, who had already faced similar situations in the past. In April 2024, a position of 371 million CRV tokens, worth around $156 million, was about to be liquidated. Just a few months later, in June, he suffered a massive liquidation amounting to $140 million, which was related to an attack on the DeFi platform UwU Lend, resulting in a loss of nearly $27 million.
Egorov explained that the latest liquidation is linked to an attempt to settle a debt related to the hack suffered by the uWu platform. In a message via the X social network, he noted that the liquidation was a measure to recover the debt that Sifu, the founder of uWu, had promised to repay.
Despite the recent drop in the price of CRV, which is currently trading near $0.915 per unit, the token has shown strong growth in recent months. In fact, over the last month, it has experienced a 116% increase, demonstrating its long-term potential despite fluctuations in its value. This could be a sign that the cryptocurrency remains an attractive investment for many.
The crypto market is being extremely volatile, and the recent fluctuations in the value of CRV are a result of this instability. The price drop of the token has also been influenced by statements from the Chairman of the U.S. Federal Reserve, Jerome Powell, who mentioned that “Bitcoin cannot be owned” and suggested a decrease in the frequency of interest rate adjustments for 2025, which could be affecting the behavior of digital assets in general