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Mustafa Mulla
Mustafa Mulla
Author
Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.
- Dec 19, 2024 10:56 UTC
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Curve DAO Founder Denies Liquidation, CRV Price Plunges 13%
Michael Egorov dismisses claims of CRV liquidation, citing ties to hacked funds repayment.
Curve DAO Token’s price plunged 13%, reacting to reported Egorov liquidation events.
Meanwhile, Blockchain data hints at Egorov liquidating 918,830 CRV tokens worth $882,660.
Curve DAO Token (CRV) is in the spotlight after allegations of a major liquidation involving its founder, Michael Egorov. Although Egorov has denied the claims, blockchain data suggests a more complicated story. Meanwhile, CRV’s price has dropped 13%, worrying investors about further declines.
Founder Denies Alleged Liquidation
According to blockchain analytics firm PeckShield, Egorov’s account faced a liquidation event on December 19 involving 918,830 CRV tokens worth around $882,660. This came shortly after Egorov repurchased 1.08 million CRV tokens for $1.2 million, paying an average of $1.114 per token.
Egorov has dismissed the allegations, claiming the tokens were tied to the June 10 “uwu” hack. He called them “receipts of Sifu’s promise to repay the hacked funds” rather than his own holdings.
However, the timing of the alleged liquidation coincided with a sharp 12% drop in CRV’s price, leaving room for speculation.
CRV’s Recovery Hints at Optimism
Despite the controversy, CRV has shown some signs of recovery, climbing above $1 for the first time since April 2023. This improvement is partly due to the launch of Curve Finance’s decentralized stablecoin, Savings-crvUSD (scrvUSD).
The stablecoin has strengthened the ecosystem, attracting more investors. By late November, staking volumes had surged to $839.29 million, underscoring growing interest in the platform.
Curve Price Update
Following the liquidation reports, CRV’s price dipped to as low as $0.90, before slightly recovering to $0.945, a 13% drop overall. This decline shows that the market is reacting nervously to the news, even with Egorov’s clarifications.
Looking ahead, if CRV’s price fails to stay above $0.90, it could face a deeper drop, possibly reaching the 0.382 Fibonacci retracement level around $0.83.
On the other hand, if the price rebounds and climbs back above $1, it could indicate a positive turn, with the potential for the token to move toward the $1.25 resistance level.
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