CRV’s Latest Crash Puts Curve Founder’s Lending Positions at Risk of Liquidation
Curve founder Michael Egorov may face the liquidation of his lending positions as the value of the project’s native cryptocurrency, CRV, experienced a significant drop. It has been reported that Egorov used five addresses on six lending platforms to mortgage 371 million CRV (equivalent to approximately $156 million) and borrow $92.54 million in stablecoins. However, the health rate of the mortgage has plummeted to around 1.1.
The recent crash in CRV price came as part of a broader market pullback in the crypto space. The token of the decentralized exchange reached a new low, falling below its previous lowest price of $0.3864, which it had reached on September 13, 2023. With this latest drop, CRV hit a record low at $0.3598.
Egorov’s positions on the various lending platforms have entered a critical danger zone due to the recent price crash. If there is no margin call or repayment, his positions could face liquidation. It is worth noting that Egorov previously sold 159.4 million CRV to 33 investors and institutions in an over-the-counter transaction. This was done to repay the loan and avoid liquidation caused by the decline in CRV prices.
Given the current circumstances, Egorov must make some important decisions. He may choose to sell CRV over-the-counter to repay the loan, transfer some of the previously borrowed stablecoins back to repay the loan, or take the risk of not taking any action, banking on the hope that the market will not continue to decline.
At the time of writing, CRV has bounced back from its recent low and is trading at $0.4468, according to TradingView data.
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