For now, the exact reasons behind the whale’s actions can not be placed. However, speculations are that it could be a fire sale triggered by concerns over Egorov’s liquidation and its potential impact on the CRV ecosystem.
By Mayowa Adebajo
Edited by Julia Sakovich
Updated
2 mins read
The price of Curve (CRV), a decentralized exchange (DEX) token focused on stablecoin trading, saw a significant drop of up to 34% within a three-hour window on June 13, 2024. This sudden price movement comes shortly after reports about the liquidation of Curve Finance founder Michael Egorov filtered through.
On-chain data analysis reveals several interesting developments around this event. According to online tracker SpotOnChain, Egorov now holds collateral of approximately 139 million CRV tokens (roughly $37 million) across three different platforms or wallets, while his debt currently sits at around $27 million. This suggests a potential vulnerability that might have triggered the liquidation.
Further adding to the speculation, an on-chain whale address, identified as “0xF07”, deposited a huge amount of CRV tokens, totaling 29.62 million ($7.68 million), onto the Binance exchange within the same timeframe. That is according to an X post by The Data Nerd. This deposit, along with another earlier deposit of 24.2 million CRV ($6.936 million), raises questions about the whale’s intentions and their potential impact on the CRV market.
For now, the exact reasons behind the whale’s actions can not be placed. However, speculations are that it could be a fire sale triggered by concerns over Egorov’s liquidation and its potential impact on the CRV ecosystem. For others, the whale deposit was probably a strategic move to capitalize on the current dip in CRV price.
The situation remains fluid, and market sentiment surrounding CRV is cautious. With the founder’s liquidation and these large whale deposits, the price of CRV will likely continue to experience volatility in the coming days.
As of publication, CRV was down 27.96% in the past 24 hours, trading at $0.2589. On the weekly chart, however, it has lost 43.86% of its value.
CRV is the governance token in CurveDAO, the decentralized autonomous organization (DAO) behind Curve Finance. However, the recent large deposits of the coins to Binance is a vote of no confidence for CRV.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.
