Curve DAO (CRV) Token Drops 11.5% as Founder Faces $882K Liquidation
Curve DAO token #CRV experienced a significant price decline, resulting in the liquidation of assets associated with Curve Finance founder Michael Egorov. According to blockchain security firm PeckShield, Egorov's on-chain address (0x7a16…5428) faced a liquidation of 918,830 CRV tokens valued at approximately $882,660 following an 11.5% price drop within 24 hours.
This liquidation occurred shortly after Egorov executed two strategic buybacks. On December 17, he purchased 1.08 million CRV tokens for $1.2 million worth of WETH #WETH, WBTC #WBTC, and DAI #DAI at an average price of $1.114. He subsequently acquired an additional 146,048 CRV for $164,000 in stablecoins USDT #USDT and DAI at an average price of $1.123. These transactions marked his first major purchases since a similar liquidation event in June.
Despite these efforts, the market downturn led to the liquidation of Egorov's leveraged position. He stated that the liquidated tokens were linked to a June hack and represented "receipts of Sifu’s promise to repay the hacked funds," rather than legitimate holdings. This clarification has not significantly alleviated concerns regarding CRV's overall market performance.
CRV Token Struggles
CRV continues to face challenges, currently trading at $0.9413, reflecting an 11.5% decline within a day. It ranks 90th among cryptocurrencies by market capitalization, with a market cap of $1.18 billion and a trading volume of $512 million.
Launched in August 2020, CRV has predominantly trended downward, with its current value down 98% from its all-time high of $60.50. Despite a broader crypto market uptrend over the past year, which saw CRV rise 53%, bearish sentiment remains prevalent.
The ongoing decline in CRV's value is also attributed to a July 2023 hack, where Curve suffered a $73.5 million exploit targeting its stable pools due to vulnerabilities in its Vyper programming language. A significant portion of the stolen funds was eventually recovered.
Optimism despite Bearish Sentiment
CRV's recent price movements highlight the token's weak market position. However, discussions on social media platform X indicate that some traders remain optimistic about a potential recovery.
The recent liquidation event underscores the high stakes in crypto markets, reminding participants that even industry leaders are susceptible to market volatility. Analysts on X have noted the risks associated with maintaining high-risk positions under volatile conditions. Whether CRV can rebound from this setback remains uncertain.