Michael Egorov denied allegations that he was liquidating his Curve DAO (CRV) position amid volatile trading, but the CRV price declined by 13%.
CurveFI founder Michael Egorov’s account was liquidated due to a rapid decline in the price of the Curve DAO Token (CRV). According to recent reports, he suffered a loss of 918.83K tokens valued at $882.66K due to the 12% decline in the value of CRV over the past 24 hours. This liquidation underscores the risks of leveraging in volatile markets. Furthermore, the precipitous price decline indicates traders’ obstacles amid volatile market conditions.
Michael Egorov’s CRV position has been liquidated following a recent buyback
Michael Egorov, the founder of CurveFI, experienced a significant liquidation event on December 19, resulting in a loss of 918.83K CRV, equivalent to $882.66K. This occurred immediately following his most recent buyback when he acquired 1.08 million tokens for $1.2 million at an average price of $1.114. Two days before the liquidation, the buyback was his first substantial acquisition of Curve DAO Tokens since a comparable event in June 2024.
According to Spot on Chain analysis, Michael Egorov’s buyback occurred on December 17, as he endeavored to consolidate his position. Nevertheless, a liquidation event was initiated when the price of Curve Dao Token plummeted by 12% within 24 hours, mere days later. PeckShield disclosed that Egorov’s position was liquidated for 918.83K CRV, equivalent to approximately $882.66K.
The sudden price drop triggered margin calls, resulting in liquidation, despite his efforts to increase his holdings in Curve DAO Token. This is a stark reminder of the dangers of maintaining substantial leveraged positions in an unpredictable market. Analysts caution that this incident should serve as a cautionary tale for other investors contemplating leverage in a declining market.
Nevertheless, Egorov clarified that the tokens were stolen from him during the “uwu” hack on June 10. He referred to the liquidated tokens as “receipts of Sifu’s promise to repay the hacked funds” rather than legitimate CRV tokens. Nevertheless, this development has also raised concerns regarding the broader performance of the Curve DAO Token, as the token experienced a 7.8% decline shortly after Michael Egorov’s buyback.
In the face of market pressure, token faces have continued to decline
The price of the CRV token has decreased by 13% in the past 24 hours, currently trading at $0.9375, following the most recent development by Michael Egorov. It experienced substantial price volatility, with a low of $0.90 and a high of $1.07 within 24 hours.
The recent performance of CRV, which has a market capitalization of $1.17 billion and a trading volume of $536 million, underscores the persistent bearish sentiment. Traders continue to exercise caution as the token regains stability after the liquidation event.
