Michael Egorov, the big boss behind Curve (CRV-USD), came alarmingly close to a financial liquidation this weekend as the crypto market took a nosedive.
Curve is a decentralized finance (DeFi) platform known for its stablecoin exchange services. It offers users a place to swap various digital tokens with minimal slippage. It leverages a unique market-making algorithm optimized for stablecoins and includes options for other tokens.
A High-Stakes Balancing Act
Egorov found himself teetering dangerously close to the brink. Over the weekend, as Bitcoin (BTC-USD) shed 10% of its value, altcoins felt even more pain. Curve’s CRV token, the lifeblood of Egorov’s financial maneuvers, plunged 30%, dropping from $0.58 to a precarious $0.43 and flirting with disaster at $0.38. The real nail-biter? Egorov’s liquidation point was lurking just below at $0.37.
At one point, his ratio had plummeted to about 1.1. Translation: Egorov’s assets were toast if CRV dipped just 10% more without a quick cash injection or debt repayment. Egorov needed to pump more CRV into his collateral to dodge this financial bullet or reduce his debt. And this isn’t the first close call he’s had. TRON’s (TRX-USD) founder, Justin Sun, has bailed him out before.
Desperate Times Call for Over-the-Counter Measures
Previously, when the chips were down, Egorov managed to rustle up $15.8 million through some savvy over-the-counter (OTC) deals, offloading 39.2 million CRV at bargain prices. Why OTC? It’s because big moves in small ponds can cause tsunamis, and CRV isn’t exactly trading like hotcakes, with under $100 million in daily volume.
Egorov’s close shave highlights a wider trend across the DeFi landscape, where $120 million was wiped off the map in liquidations in just one day. And he’s not alone in the horror story of liquidations last weekend. Crypto traders collectively kissed goodbye to nearly $2 billion. If Egorov had hit the deck, CRV’s price could have plummeted, triggering a sell-off cascade.
CRV holders are understandably upset, especially when the main bigwig is gambling with the token at such a large scale that he could single-handedly crash the token.
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