Curve Founder Michael Egorov Faces Liquidation as Altcoin Market Collapses
The founder of the decentralized finance (DeFi) protocol Curve (CRV) found himself on the brink of liquidation as the altcoin market took a nosedive over the weekend. Michael Egorov, the brains behind Curve, faced the possibility of his lending positions being liquidated as the price of CRV plummeted to $0.42.
Egorov had mortgaged a staggering 371 million CRV tokens, valued at approximately $156 million, across five addresses on six lending platforms to borrow $92.54 million in stablecoins. With a health rate dropping to around 1.1, Egorov was dangerously close to having his positions liquidated unless he injected fresh capital into his trades.
The situation unfolded amidst a broader market meltdown that saw the crypto derivatives market witnessing hundreds of millions of dollars in liquidations. Centralized exchange (CEX) traders who had gone long on digital assets suffered losses totaling $1.556 billion, while bearish traders betting against the market were hit with $273 million in liquidations over the two-day period.
Decentralized exchange (DEX) platforms also felt the heat, with over $120 million in liquidations recorded, marking the highest figure for 2024. The volatility in the market spared no one, as traders across various platforms grappled with the fallout from the weekend’s digital asset wipeout.
As the crypto market continues to navigate through turbulent waters, investors are reminded to exercise caution and conduct thorough research before engaging in high-risk investments. The events of the weekend serve as a stark reminder of the inherent risks associated with trading in Bitcoin, cryptocurrencies, and digital assets.
