Curve (CRV) witnessed a drastic drop in its price, plummeting by as much as 34% in just three hours. The sudden decline was sparked by reports of Michale Egorov, the founder of Curve Finance, facing a significant liquidation event. This news took market observers and investors by surprise, spreading rapidly across social media and cryptocurrency news outlets.
The value of $CRV tumbled by up to 34% within three hours following revelations of Michale Egorov, the founder of #Curvefi, facing liquidation!
On-chain data reveals the following details:
1. Michale Egorov (@newmichwill) currently holds 139 million $CRV ($37 million) as collateral and has a debt of $27 million across three platforms and wallets…
According to reports, Michale Egorov, also known as newmichwill in the crypto world, holds a substantial amount of 139 million CRV tokens worth around $37 million as collateral. Egorov is currently grappling with a debt of $27 million spread out across various platforms and wallets. PeckShieldAlert highlighted that an address linked to Egorov was forcibly liquidated, resulting in a loss of approximately 20.2 million CRV on the lending platform UwULend, with the liquidation being conducted by sifuvision.eth.
Whale Movements and Market Repercussions
In a separate development, a notable transaction involving a whale known as 0xF07 was observed moving 29.62 million CRV tokens worth about $7.68 million to Binance. This transfer is believed to be a response to the liquidation pressures on the lending platform Fraxlend, showcasing the ripple effects of large holder liquidations on the wider market.
Following these tumultuous events, the community surrounding the affected platforms came together to stabilize the situation. A substantial amount of debt has been repaid, including 3.52 million DAI, 233,819 crvUSD, 4.23 million USDT, and 481.36 wETH (equivalent to $1.73 million), totaling up to $9.71 million. Moreover, all outstanding bad debt in the wETH (Wrapped Ethereum) market has been resolved, as confirmed by recent updates from community sources.