Curve (CRV) faced a dramatic drop in price, plummeting by a staggering 34% in just three hours. The sudden decline was sparked by reports of a major liquidation event involving Michale Egorov, the founder of Curve Finance. The news of Egorov’s liquidation sent shockwaves through social media and cryptocurrency news outlets, catching market watchers and investors off guard.
Following the announcement, the price of $CRV tumbled by up to 34% within a three-hour window after news broke of Michale Egorov, the founder of #Curvefi, facing liquidation. On-chain data revealed that Michale Egorov, also known as @newmichwill in the crypto community, currently holds a substantial amount of 139 million CRV tokens valued at around $37 million, which are being used as collateral. Egorov is grappling with a debt of $27 million spread across three different platforms and wallets.
The address associated with Egorov was forcibly liquidated, resulting in a loss of approximately 20.2 million CRV on the lending platform UwULend, with the liquidation orchestrated by sifuvision.eth. Additionally, a notable whale, identified as 0xF07, made a large transaction moving 29.62 million CRV tokens (worth about $7.68 million) to Binance in response to the liquidation pressures on the lending platform Fraxlend, showcasing the ripple effect of significant holder liquidations on the broader market.
In the aftermath of these events, the community surrounding the affected platforms banded together to stabilize the situation. A substantial amount of debt, totaling $9.71 million, has been repaid, including 3.52 million DAI, 233,819 crvUSD, 4.23 million USDT, and 481.36 wETH (equivalent to $1.73 million). Furthermore, all outstanding bad debt in the wETH (Wrapped Ethereum) market has been cleared, as confirmed by the latest updates from community sources.