- Whales accumulate 55.26M CRV, driving the price up 12% post-liquidation.
- Egorov’s remaining CRV assets are secure, not at immediate liquidation risk.
In the wake of a significant liquidation event involving Michael Egorov, founder of Curve Finance, the CRV token has seen a notable recovery. Nearly a week ago, Egorov faced liquidation after the CRV token plummeted to an all-time low of $0.219. The situation led to widespread liquidations across various platforms, with Egorov’s lending positions largely liquidated, totaling around 100 million CRV valued at $27 million.
Despite this, Egorov still holds 39.35 million CRV, securing $5.4 million in stablecoins on a lending platform.
Meanwhile, today’s market activity reveals a turnaround for the CRV token. Six whales have accumulated a total of 55.26 million CRV (approximately $19.4 million) during the dip following the liquidation crisis. Interestingly, five of these six whales are first-time accumulators, reflecting a surge in first-time purchases of CRV over the past week.
Six whales have accumulated 55.26M $CRV (~$19.4M) during the dip post- $CRV liquidation crisis!
— Spot On Chain (@spotonchain) June 19, 2024
• 5 of the 6 whales are first-time accumulators. This is reflected in the surge in first-time purchases of $CRV in the past week.
• The $CRV price is up ~14% (24H), almost back to… pic.twitter.com/DbBTipytcF
Notably, this influx of new investors has contributed to a 12% increase in the CRV price over the past 24 hours, bringing it almost back to its pre-liquidation level, accompanied by a modest 1% surge in trading volume.
Looking Back At the Past
Arkham Intelligence previously warned that Egorov’s CRV positions worth $140 million across five protocols were at risk of liquidation if the digital asset’s price dropped by 10%. They noted that Egorov’s borrowing on platforms like Llamalend, where his $50 million crvUSD borrows cost him around 120% APY, posed a significant risk due to the limited remaining crvUSD for borrowing against CRV.
Egorov praised Curve Finance’s soft liquidation mechanism for its effective handling during a recent real-world test, stating that it allowed for successful liquidation without bad debts.
As an established DeFi project, Curve’s quality and long-term profitability remain acknowledged, though the impact of recent events on its standing and community cohesion remains uncertain.
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