DeFi coin Curve DAO Token (CRV) faced a sharp price drop, leading to the liquidation of CurveFI founder Michael Egorov’s account. Recent reports showed that in 24 hours, CRV lost 918.83k tokens worth $882.66k amid a 12% drop in its value. This liquidation highlights the risks of leveraging in volatile markets. In addition, the sharp drop in prices reflects the challenges investors face in turbulent market conditions.
CurveFi founder’s DeFi coin declines
On December 19th, CurveFI founder Michael Egorov faced a major liquidation event, losing 918.83k CRVs worth $882.66k. This came right after his last buyback, in which he purchased 1.08 million tokens for $1.2 million at an average price of $1.114. The buyback took place two days before the liquidation and marked the first significant Curve DAO Token purchase since a similar event in June 2024.
According to Spot on Chain analysis, Michael Egorov’s buyback took place on December 17, when he tried to strengthen his position. However, just a few days later, the price of Curve Dao Token dropped 12% in 24 hours, triggering a liquidation event. PeckShield reported the liquidation of Egorov’s position in the amount of 918.83 thousand CRVs worth approximately $882.66 thousand.
Massive liquidation took place
Despite an attempt to increase its holdings in Curve DAO Token, the sudden price drop triggered margin calls, leading to liquidation. This is a stark reminder of the dangers of maintaining large leveraged positions in an unpredictable market. Analysts warn that this should be a cautionary tale for other investors considering leveraging up in a down market.
However, Egorov explained that the tokens were stolen from him during the “uwu” hack on June 10. He described the liquidated tokens as “receipts for Sifu’s promise to repay the hacked funds” instead of legitimate CRV tokens. Despite this, the development has also fueled concerns over the broader performance of the Curve DAO Token, as the token experienced a 7.8% drop shortly after Michael Egorov’s buyback.
The CRV token price has fallen 13% in the last 24 hours, trading at $0.9375 following Michael Egorov’s latest development. It hit a 24-hour low of $0.90 and a high of $1.07, reflecting significant price volatility. With a market capitalization of $1.17 billion and a trading volume of $536 million, CRV’s recent performance highlights the ongoing bearish trend. Investors remain cautious as the token struggles to regain stability following the liquidation event.
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