Curve Finance Founder's $882K CRV Liquidation Shakes Up Market

• Michael Egorov faces liquidation of 918.830 CRV, totaling US$882 thousand.
• CRV drops 12%, reflecting uncertainty after UwU Lend hack.
• scrvUSD launch drives 124% monthly growth in CRV.

Michael Egorov, founder of decentralized finance platform Curve Finance, has faced yet another significant liquidation involving 918.830 CRV tokens, valued at approximately $882. The event comes after the CRV token price dropped 12% in just 24 hours, dropping from $1,11 to around $0,91. This move has raised concerns about the asset’s volatility and the state of the crypto market in general.

#PeckShieldAlert #Liquidation Michael Egorov-labeled address (0x7a16…5428) has been liquidated for 918.83K $ CRV (totaling $882.66K). pic.twitter.com/ZXehpFZT81

—PeckShieldAlert (@PeckShieldAlert) December 19, 2024

On-chain data indicates that the liquidated tokens were related to the UwU Lend protocol hack that occurred in June 2024. Egorov clarified on his X Platform account that these CRV were not “real” but rather “receipts of a promise of repayment” made by UwU founder Sifu after the security incident. Even so, the event had a significant impact, with CRV underperforming the CoinDesk 20 Index, which fell 4,81% over the same period.

Liquidations are not new to Egorov. In June 2024, he lost $140 million worth of CRV due to debt issues and vulnerabilities in UwU Lend, which suffered an attack resulting in losses of approximately $27 million. This history of liquidations raises questions about the sustainability of Egorov’s strategies, as he frequently borrows to acquire more CRV tokens and try to stabilize its price.

CRV has shown signs of recovery in recent months, registering a cumulative increase of 124% in the space of a month, driven by the launch of the Savings-crvUSD (scrvUSD) stablecoin. The new decentralized asset has attracted more investors to the Curve Finance ecosystem, with staking volumes reaching $839,29 million in November. However, the recent liquidations raise a warning about the fragility of the market.

The total value locked (TVL) on Curve Finance has also taken a hit, falling from $3,5 billion to $3,25 billion in the past 72 hours. The CRV price is currently hovering around $0,92. Analysts note that if the $0,90 support is lost, the asset could decline to levels closer to $0,83. On the other hand, a recovery above $1 could indicate a positive move towards the $1,25 resistance.