Curve Founder Liquidation: CRV Price Drop Triggers Sell-Off

Key Points:

• Curve Founder Liquidation: Michael Egorov’s $882K CRV position was liquidated after a 12% drop in the CRV’s price within 24 hours.
• The latest liquidation adds to Egorov’s history of significant losses, fueled by CRV’s price volatility and related DeFi protocol vulnerabilities.

Curve Founder Liquidation: Michael Egorov has been liquidated again, this time for $882,000 in CRV, amid ongoing crypto market turbulence.

Curve Founder Liquidation: Egorov Loses $882,000 in CRV

On-chain data reveals that Michael Egorov, the founder of DeFi platform Curve Finance, has been liquidated for a loan of 918.83K CRV worth $882,000 following a 12% drop in the price of CRV over the past 24 hours.

This Curve Founder Liquidation event comes just two days after Michael Egorov spent $1.2 million to purchase more CRV at $1.11. Unfortunately, the price of CRV has since dropped to around $0.91 at the time of writing, triggering the liquidation.

Following the liquidation, Egorov stated on X that the CRV liquidated was related to the uWu hack in June, and this liquidation was essentially a “measure to recover the debt that Sifu (uWu founder) had promised to repay.”

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Curve Founder Liquidation: A Recurring Event for Egorov

This is not the first time Egorov has faced significant liquidations. In April 2024, he faced a potential liquidation of 371 million CRV tokens, equivalent to $156 million. Most recently, in June, the Curve Finance founder was liquidated for a total of $140 million while attempting to borrow more to buy CRV and support the token’s price.

The cause of the bad debt and liquidation at that time was believed to stem from UwU Lend, a DeFi protocol that allows users to borrow, lend, and stake tokens. UwU Lend suffered a security attack resulting in a loss of nearly $27 million.

At the time of writing, the CRV token is trading at around $0.92, reflecting a decrease of 11% in the last 24 hours. However, when considering the 1-month timeframe, Curve Finance’s cryptocurrency has recorded a significant growth of up to 124%.

The sharp decline in CRV is a common situation across the crypto market after Fed Chairman Jerome Powell asserted that “Bitcoin cannot be owned” and projected a decrease in the frequency of interest rate adjustments in 2025.