- In a bid to maintain his futures position, Curve Finance founder Michael Egorov has begun selling altcoins.
- Crypto analytics firm Arkham revealed that Egorov’s $140 million CRV position is at liquidation risk, and he has been paying an annual fee of $60 million to sustain his position at LlamaLend.
- According to data from on-chain analytics platform Lookonchain, Egorov has initiated significant sales of Curve (CRV) and UwU Lend (UWU).
Michael Egorov, the founder of Curve Finance, has started liquidating altcoin assets to avoid liquidation, reflecting broader market turbulence.
Michael Egorov’s Strategic Altcoin Liquidation
Data from blockchain analysis indicates that Egorov has sold altcoins worth substantial amounts, all in a bid to avert the risk of his positions being liquidated. This decisive move has been largely influenced by the declining prices of these altcoins.
Significant Financial Strain Amid Market Downturn
In specific transactions highlighted by Lookonchain, Egorov reportedly sold $810,000 worth of 3.1 million CRV and $33,000 worth of UWU on June 13. The decline in CRV’s value poses a significant threat to his long-held positions, prompting these sales. Over the past 24 hours, Curve DAO (CRV) has plummeted by 29.23%, trading at a reduced price of $0.25.
Historical Context and Ongoing Challenges
Egorov has been grappling with these positions since the FTX debacle in 2022, facing liquidation risks during almost every market crash. Arkham’s recent analysis suggests that a further 10% drop in CRV prices could trigger liquidation of his positions.
Conclusion
Michael Egorov’s ongoing struggle to maintain his positions amid volatile market conditions underscores the persistent risks within the crypto finance sector. Investors should remain vigilant, noting the influence of broader market forces on individual assets and positions.
