Curve ($CRV) Coin Crashes as Founder’s $95.7M Borrowing Sparks $22.6M Liquidation Frenzy

713

Curve Founder’s $95.7M Crypto Borrowing Crisis Sparks $22.6M Liquidation Frenzy Amid Market Plunge. 

Curve is a popular crypto DeFi protocol specializing in stablecoin trading with low fees and efficient liquidity pools. It’s known for optimizing swaps between similar assets like DAI, USDC, and USDT, using a specialized algorithm to maximize trading stability and capital efficiency in decentralized finance. $CRV is the native token of this protocol.

The current trade price of $CRV coin is $0.273 & this trade is -23% down over the last 24 hours. Notably the trade price of this coin crashed in the last couple of hours suddenly.

Curve ($CRV) Coin Crashes as Founder's $95.7M Borrowing Sparks $22.6M Liquidation Frenzy 1

The sudden downfall in the trade price of Curve coin is a part of increasing panic among the Curve coin investors. 

On 12 June 2024, Crypto intelligence platform Arkham reported that Curve founder Michael Egorov has borrowed a significant amount, $95.7 million in stablecoins primarily in crvUSD, using collateral worth $141 million in $CRV across five protocols. 

These positions are now facing liquidation as CRV’s value dropped by 12% recently.

According to live data available on Parsec, $22.6 million worth of CRV collateral has been liquidated over the past four hours, with $15 million of that occurring in the last hour alone. This rapid liquidation suggests potential financial strain or risk management issues for Egorov and underscores the volatility and risks inherent in leveraging cryptocurrency assets for borrowing purposes.

So far no response has come to the public domain from the Curve protocol founder and also from the Curve Finance team regarding the latest dump in the trade price of the $CRV token. 

It is worth it to note that Curve Finance’s founder talked about the liquidation issues & risks, nearly 10 hours ago, but he failed to talk about the latest dump in prices, as his response was for a Crypto X user on a question, asked by that user 2 days ago. 

Read also: Shock Theft: $11.6 Million Vanishes from QuantMatter’s OKX Institutional Account