- Michael Egorov reportedly faced the liquidation of his lending positions as CRV’s price dropped significantly.
- Egorov mortgaged 371m CRV through five addresses on six lending platforms.
- CRV fell to a new low of $0.3598 after breaking below its previous low of $0.3864.
Curve founder Michael Egorov reportedly faced the liquidation of his lending positions as the project’s native crypto, CRV, dropped significantly. According to Colin Wu, the famous Asian blockchain and crypto journalist, Egorov mortgaged 371m CRV, approximately $156 million, through five addresses on six lending platforms to borrow $92.54m in stablecoins. He noted that the mortgage’s health rate has dropped to around 1.1.
CRV crashed following a recent pullback in the overall crypto market. The decentralized exchange’s token fell to a new low after breaking below its previous lowest price of $0.3864, which it achieved on September 13, 2023. With the latest drop, CRV has recorded a new low at $0.3598.
According to reports, Egorov has five addresses that have pledged 371 million CRV, equivalent to $156 million, cumulatively on six lending platforms and lent out $92.54 million in stablecoins. Following the recent price crash, the Curve founder’s positions on the various platforms have slumped into the danger zone, threatening liquidation unless there is a margin call or repayment.
Egorov sold 159.4 million CRV to 33 investors and institutions in an over-the-counter (OTC) transaction last August. He received 63.76 million U stablecoins to repay the loan to avoid liquidation caused by the decline in CRV prices. As of then, CRV traded for $0.4.
The recent CRV crash has put Egorov in a tight position, leaving him no choice but to make some critical decisions. The DEX founder would either continue to sell CRV OTC to repay the loan, transfer part of the previously borrowed stablecoins back to repay the loan, or do nothing and bet that the market will not continue to fall.
As of the time of writing, CRV had bounced off the recently achieved low, trading for $0.4468, according to data from TradingView.
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