🌎 Curve Finance Founder Faces Liquidations, CRV Token Drops 25%

Michael Egorov, the founder of Curve Finance, faced significant liquidations on several multi-million dollar positions, leading to a 25% drop in the price of the CRV token.

The token’s price saw a sharp decline on June 13, with losses reaching up to 30% at one point. As of now, CRV is trading at an all-time low of $0.25.

Egorov’s liquidations are attributed to high-stake positions backed by CRV as collateral. Reports indicate that he has over 111 million CRV tokens used as collateral and more than $20 million in debt across several platforms, including Inverse, Frax Finance, and UwU Lend.

In response to CRV’s sharp decline, Frax Finance mentioned that there is no bad debt on Fraxlend due to their partial liquidation and isolated lending design. Data from blockchain forensics firm Arkham Intelligence shows that three of Egorov’s accounts constitute over 90% of the borrowed crvUSD on the protocol.

Centralized cryptocurrency exchanges are observing a surge in CRV deposits, with their CRV balances reaching an all-time high, increasing by 57%.

Founded in 2020, Curve Finance has raised millions from its backers to facilitate the efficient trading of stablecoins through its automated market maker platform. The project has received support from notable investors, including Binance Labs, Platinum Capital VC, WhiteBlock Ventures, and Cluster Capital.