Curve DAO Token (CRV) attracted attention with its 12% loss in value in recent days. This decline came to the fore with the liquidation of CurveFI’s founder Michael Egorov, which resulted in a loss of $ 882.66 thousand. Egorov suffered losses when his position was liquidated just two days after making a large purchase.
Liquidation Process and Lost Funds
This liquidation, which occurred on December 19, began with Egorov’s purchase of 1.08 million CRV tokens on December 17. Egorov aimed to strengthen his position with this purchase worth approximately $1.2 million. However, the rapid 12% depreciation of the CRV token triggered the risk of liquidation of Egorov’s accounts. Egorov, who lost approximately 918.83K tokens in this process, suffered a total loss of 882.66 thousand dollars.
“The liquidated tokens consisted of receipts used for the return of hacked funds,” Egorov said in his statement after the liquidation. He also stated that the liquidation occurred as a result of theft and the lost tokens were not real CRV tokens. These claims caused further speculation on the market.
Market Fluctuations and Investor Reaction
The price of CRV token dropped to $0.9375 after the liquidation event. The token, which reached a low of $0.90 in the 24-hour period, followed a fluctuating course, rising to $1.07 during the day. This volatility reflected the overall uncertainty of the market and triggered a cautious approach among investors.
In the current state of the market, the total market value of CRV is recorded at $1.17 billion, and the daily trading volume is $536 million. Investors once again realized that they need to be more careful about volatility when taking large positions.
Finally, this liquidation incident made clear that leveraged transactions carry high risks and how market fluctuations can affect investments. Careful strategies and risk management are more critical than ever for investors.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
