What to know:
- A CRV position worth $882,000 was liquidated on Thursday after CRV dropped by 12%.
- Curve founder Michael Egorov said that the liquidated position was tied to the uWu hack in June and that the liquidation was a “receipt of Sifu’s [uWu’s founder] promise to repay the hacked funds.”
- TVL on Curve Finance is down from $3.5 billion to $3.25 billion in the past 72-hours.
As a seasoned crypto investor who has weathered numerous market fluctuations, I must admit that watching the liquidation of Curve founder Michael Egorov’s substantial CRV position was a sobering reminder of the inherent risks in this space. Despite his best intentions to bolster the price and support the platform, the size of his positions proved too large for the markets to handle, causing yet another round of mammoth liquidations.
In simpler terms, the founder of Curve, Michael Egorov, sold off approximately $882,000 worth of CRV tokens because the value of CRV dropped by more than 12% within the last day.
In early 2024, the leading figure atop the decentralized finance (DeFi) lending platform faced a string of massive loan liquidations. This occurred when he borrowed funds to buy CRV, aiming to boost its price. The cumulative liquidation amounted to $140 million, with June seeing the majority of these events.
As an analyst, I’d like to clarify a point regarding my financial situation. Previously, I undertook the process of liquidating all my loans due to the size of my positions becoming excessively large for the markets to manage effectively. Consequently, this led to approximately 10 million dollars worth of unfavorable debt.
On December 17th, the latest acquisition cost approximately $1.2 million. At that time, CRV was being traded at $1.11. However, by Thursday, its value had dropped to roughly $0.91.
After last Thursday’s liquidation event, Egorov turned towards X, explaining that the liquidated CRV was connected to the uWu hack incident in June. He further clarified that the liquidation served as a proof of Sifu’s (founder of uWu) commitment to return the funds that were stolen during the hack.
Despite this underperformance, CRV continued to be sold off, as it dropped 12%, while the CoinDesk 20 Index only decreased by 4.81% during the same period.
The total value secured on the Curve platform has decreased from $3.5 billion on December 16 to $3.25 billion by Thursday, with a significant portion of this decrease being due to falling asset prices.
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2024-12-19 16:54