Michael Egorov Dismisses Curve DAO Liquidation Claim, CRV Dips 13%

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As a seasoned crypto investor who has weathered numerous market storms, I can’t help but feel a sense of empathy for Michael Egorov, the founder of CurveFI. Having navigated my fair share of market volatility and liquidations, I understand the emotional rollercoaster that comes with such events.

1) The Curve DAO Token (CRV) experienced a significant price decrease, which resulted in the forced sale of Michael Egorov’s account due to his high leverage positions. Reports indicate that he lost approximately 918,830 tokens valued at around $882,660 during CRV’s 12% drop over 24 hours. This liquidation underscores the potential dangers of using leverage in unstable markets. Furthermore, the dramatic price plunge underscores the difficulties traders often encounter when navigating through turbulent market situations.

CurveFI Founder’s CRV Position Liquidated After Recent Buyback

On December 19th, Michael Egorov, founder of CurveFI, encountered a large-scale token selloff that cost him approximately 918,830 CRV tokens valued at $882,660. This event followed his recent purchase where he obtained 1,080,000 tokens for a total of $1.2 million, with each token costing an average of $1.114. This buyback took place two days before the selloff, representing Egorov’s first substantial CRV token acquisition since a similar incident in June 2024.

Based on Spot on Chain’s analysis, Michael Egorov executed a buyback on December 17 with the intention of bolstering his holdings. Unfortunately, within a few days, the price of Curve Dao Token dropped by 12% in a single day, leading to a liquidation event. PeckShield reported that Egorov’s position was liquidated, totaling 918,830 CRV, which equates to approximately $882,660.

Warning: Liquidation of Michael Egorov’s designated wallet (0x7a16…5428) has occurred, involving approximately 918,830 $CRV tokens, equivalent to a total value of around $882,660.

— PeckShieldAlert (@PeckShieldAlert) December 19, 2024

Although he tried to expand his Curve DAO Token assets, a sudden decrease in price prompted margin calls which resulted in forced liquidation. This incident underscores the risks associated with holding significant leveraged positions during volatile markets. Analysts advise that this occurrence should act as a warning for investors thinking about using leverage in a falling market.

In my analysis, I’d like to clarify that the tokens in question were taken from me during the June 10 “uwu” hack. Contrary to some interpretations, these liquidated tokens represent receipts of Sifu’s pledge to reimburse the stolen funds, not legitimate CRV tokens as such. This situation, however, has added to the broader apprehensions regarding Curve DAO Token’s performance, given that the token experienced a 7.8% decline following Michael Egorov’s buyback.

Token Faces Continued Decline Amid Market Pressure

As a crypto investor, I’ve noticed a 13% dip in the CRV token price over the past 24 hours, now trading at around $0.9375 following Michael Egorov’s recent announcement. The token reached a low of $0.90 and peaked at $1.07, demonstrating considerable price fluctuation within this timeframe.

Showing continued signs of pessimism, the current market value of CRV stands at approximately $1.17 billion, with a trading volume of about $536 million. Despite this, traders are exercising caution due to the token’s recent instability, which has persisted since the liquidation event, making it challenging for the token to re-establish its footing.

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2024-12-19 11:04