Curve [CRV] Crashes 23% in Just 24 Hours Amid Founder’s Debt Crisis

Journalist

• Curve DAO founder faces massive liquidation
• CRV has fallen more than 23%

There has been a lot of FUD (fear and uncertainty) surrounding this story in the last 24 hours. The reason for this is the founder’s high debt and the liquidation of many of these positions.

Curve DAO at risk

Data from Arham Intelligence shows that $140 million worth of CRV tokens are at risk of liquidation.

Michael Egorov’s platform borrowed $95.7 million worth of stablecoins for $141 million in CRV across five protocols.

Data shows that $50 million was borrowed on a platform with an APY of around 120%. This high APY can be attributed to the fact that there is almost no crvUSD available to borrow against CRV on the platform.

This is a risky situation as these positions will be liquidated if the value of CRV falls.

The price of CRV has recently fallen, and the liquidations that followed have reinforced the downtrend.

The historical decline of CRV

AskFX’s analysis of CRV’s daily price trend has shown that there will be more liquidations by the end of the day.

The price of the product has fallen by more than 23% since the time of writing, from around $0.36 to $0.27.

On the 10th and 11th of this month, CRV experienced consecutive declines, with a total drop of over 16%. On the chart, the price fell from around $0.41 to $0.35 during these two days.

The price of the coin briefly rose to $0.36 on June 11, providing a brief respite.

The chart also showed that the recent drop was the largest single drop CRV has seen in more than a year.

Exchange supply hits all-time high

This recent development has caused panic among holders and resulted in a large amount of Curve DAO being sent to exchanges.

AskFX’s analysis of the CryptoQuant exchange reserve showed a significant increase in the last 24 hours.

At the time of writing, data showed that reserves had increased by a significant amount and now stood at over 627 million.

Is your portfolio in the black? Check out the CRV profit calculator

This was also the highest level of CRV reserves ever and marked a record high.

This could be a sign that many holders are selling their shares and this could drive the price down.