blockchainreporter.net
Curve ($CRV) experienced a significant price plunge, falling up to 34% within three hours. The sudden drop was triggered by news that Curve Finance founder Michale Egorov was undergoing a significant liquidation event. Market watchers and investors were surprised as details of the liquidation spread across social media and cryptocurrency news platforms.
The $CRV price dropped up to 34% (3H) after the news of the #Curvefi founder (Michale Egorov) being liquidated broke out!
— Spot On Chain (@spotonchain) June 13, 2024
Here are the on-chain highlights 👇
1. Michale Egorov (@newmichwill) currently has 139M $CRV ($37M) in collateral and $27M in debt across 3… pic.twitter.com/tJLtmLUqLo
According to on-chain data, Michale Egorov, known in the crypto community as newmichwill, has substantial holdings with 139 million $CRV tokens, valued at approximately $37 million, used as collateral. Egorov is currently facing a debt of $27 million spread across three different platforms and wallets. PeckShieldAlert reported that an address associated with Egorov was forcibly liquidated, losing around 20.2 million $CRV on the lending platform UwULend. The liquidation was carried out by the entity known as sifuvision.eth.
Whale Movements and Market Impact
In a related development, a significant transaction was noted involving a whale, identified as 0xF07, who moved 29.62 million $CRV tokens (worth around $7.68 million) to Binance. This move is believed to respond to the liquidation pressures on the lending platform Fraxlend, illustrating the cascading effect of large holder liquidations on the broader market.
https://t.co/j8PIg1XISm
— PeckShieldAlert (@PeckShieldAlert) June 13, 2024
After these market jolts, the community around the affected platforms rallied to stabilize the situation. A significant amount of debt has been repaid, including 3.52 million DAI, 233,819 crvUSD, 4.23 million USDT, and 481.36 wETH (worth $1.73 million), totaling up to $9.71 million. Additionally, all outstanding bad debt in the wETH (Wrapped Ethereum) market has been cleared, as confirmed by the latest updates from community channels.