Curve Founder Dumps $141M In CRV; What’s In Michael Egorov’s Mind?: Guest Post by Thecoinrepublic.com

1 Curve Founder Michael Egorov bought $95.7 Million worth of CrvUSD.
2 Egorov used collateral worth $141 Million in Curve DAO tokens across five protocols to make the purchase.
3 The crvUSD token price spiked amid the purchase.

On June 12, 2024, the founder of Curve, Michael Egorov, stepped up to buy crvUSD tokens worth $95.7 Million by liquidating $141 Million in Curve DAO tokens (CRV). As a result, a sudden surge of 0.22% was recorded in crvUSD price, whereas CRV dropped by over 27.99% in a day.

Michael Egorov’s $95.7 Million Crypto Borrowing

According to Arkham, a crypto intelligence platform, Michael Egorov liquidated a huge amount of CRV tokens. The scenario indicates potential financial strain and risk management issues for Egorov.

At the press time, CRV was trending in a bearish phase, hovering at $0.2585 after an intraday drop of 27.99% with a market cap of $320,533,529.

$140M CRV nearing Liquidation

Curve founder Michael Egorov is currently borrowing $95.7M in stablecoins (mostly crvUSD) against $141M in CRV, across 5 accounts on 5 protocols.

Based on current rates, Egorov is paying $60M annualized in order to keep his positions open on… pic.twitter.com/ipTlWLZOAx
— Arkham (@ArkhamIntel) June 12, 2024

Curve founder’s sudden move shocked the crypto community and reflected the volatility and risks of leveraging digital assets for borrowing purposes. However, no reaction was witnessed from the team.

Furthermore, Binance recently integrated CRV tokens into Arbitrium One and Optimism. The move is expected to enhance Curve Finance’s liquidity and transactional efficiency.

Addressing the problems of plugging and high transaction fees on the Ethereum network was another major purpose behind the integration. At press time, ETH was trading at $3,500.65 and recorded a decline of 0.60% intraday.

Is History Repeating Itself?

The same scenario was recorded on April 12, 2024, when CRV’s value dropped by more than 30%. The scenario resulted in Egorov being close to liquidating 371 Million CRV leveraged as collateral for stablecoin loans.

At that time, Egorov liquidated CRV tokens worth $156 Million through five addresses on six different lending platforms to buy $92.54 Million in stablecoins.

Curve founder Michael Egorov also faced liquidation of his lending positions as CRV fell to $0.42. Michael mortgaged a total of 371m CRV (approximately $156 million) through 5 addresses on 6 lending platforms to borrow $92.54m in stablecoins. The health rate has dropped to around…
— Wu Blockchain (@WuBlockchain) April 14, 2024

In the same manner, other altcoins, including Immutable (IMX) and Bitcoin Cash, also crashed the hardest over the weekend. Moreover, the crash’s impact was also reflected on memecoins, including dogwifhat (WIF), Shiba Inu (SHIB), etc.

Most of the memecoins experienced a drop of 30% after the CRV crash.

Impact on crvUSD

The purchase of $95.7 Million worth of crvUSD by Curve founder spiked the token value by 0.22% in a day. The token was hovering at $0.9995 with a market cap of $140,707,482 and $274,797,544 in 24-hour volume.

crvUSD Price Chart I Source: CoinMarketCap

Before touching $0.9995, crvUSD rose from $0.9951 to $1.16 in a single day and gained a 0.08% spike in 7 days. The outstanding performance broke crvUSD’s all-time high price of $1.0047 on October 23, 2023.

The CRV token dropped 34.47% last month and shot to its all-time low of $0.2236 on June 13, 2024. Additionally, the token declined by 41.65% in the last 7 days, indicating high liquidity and low interest from investors.

Disclaimer

The analysis given above is for informational and educational purposes only. You should not take it as financial, investment, or other advice. Investing in or trading crypto assets is risky. Please consider your circumstances and risk profile before making any investment decisions.

Curve Founder Dumps $141M In CRV; What’s In Michael Egorov’s Mind?

Table of Contents

Michael Egorov’s $95.7 Million Crypto Borrowing

Is History Repeating Itself?

Impact on crvUSD

Disclaimer

Thecoinrepublic.com

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