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Yesterday's Sharp Drop Almost Bankrupted This Altcoin Founder: It's About to Be Liquidated!

Following the sharp decline in the market yesterday, it was learned that the positions of an altcoin founder were almost liquidated.

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Following the decline in the cryptocurrency market in the last two days, Curve (CRV) price dropped to $0.42. This pushed Curve Finance founder Michael Egorov's credit position back into the red. Egorov has currently pledged CRV 371 million ($156 million) across six lending platforms from five addresses, for which he has borrowed $92.54 million worth of stablecoins.

The decline in the CRV altcoin price has once again put Egorov's lending positions on various platforms into the danger zone. Some positions have seen their health rates drop to around 1.1; This means that if the CRV price continues to fall by 10% and no positions are closed or refunded, liquidation will begin.

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Last August, Egorov sold 159.4 million CRV on an over-the-counter (OTC) basis to 33 investors/institutions in order to avoid liquidation due to the drop in CRV price. This sale, at a price of $0.4 per CRV, was made in exchange for a stablecoin worth $63.76 million, which was used to repay the loan.

Now, with the CRV price falling and his borrowing position back in the red, Egorov faces a difficult decision. Should he continue to sell his CRVs OTC to repay the loan? Should he transfer back some of the stablecoins he previously lent out to repay the loan? Or should he do nothing and believe that the market will not continue to fall? A difficult decision awaits the Curve founder.

*This is not investment advice.

Buradaki Yorumlardan Bildirim Al

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