- The founder of Curve DAO is facing massive liquidations.
- CRV has fallen by more than 23%.
Curve DAO [CRV] has been under heavy FUD (fear, uncertainty and doubt) over the past 24 hours. This is due to the founder’s heavy credit position and the liquidation of most of those positions.
Curve DAO in danger
According to data from Arham IntelligenceCRV tokens worth $140 million were in danger of being liquidated.
This happened because the platform’s founder, Michael Egorov, lent approximately $95.7 million in stablecoins against $141 million in CRV across five different protocols.
According to the data, $50 million of the loans were on a platform that charged approximately 120% APY. The high APY is because there is almost no CRVUSD available to borrow against CRV on the platform.
The risk here is that these positions will be liquidated if CRV falls in value.
Now, there has been a recent decline in the price of CRV, and the resulting liquidations have put additional pressure on the price, further exacerbating the downward trend.
CRV’s historic decline
AMBCrypto’s analysis of CRV’s price movement on a daily time frame indicated that more liquidations are likely to occur towards the end of the day.
At the time of writing, the price has fallen by over 23%, from about $0.36 to about $0.27.
CRV experienced consecutive declines on June 10 and 11, with a total decline of more than 16%. The chart indicated that during those two days the price dropped from about $0.41 to about $0.35.
Source: TradingView
A 2.74% increase on June 11 briefly pushed the price to around $0.36, providing a temporary respite and the appearance of a potential recovery.
Additionally, the chart showed that this recent decline was the highest decline CRV had experienced in more than a year.
The supply on Exchange reaches ATH
These recent developments have caused panic among holders, sending a significant amount of Curve DAO (CRV) to exchanges.
AMBCrypto’s analysis of its foreign exchange reserve on CryptoQuant showed a significant spike in the last 24 hours.
Source: CryptoQuant
The data shows that foreign exchange reserves have increased significantly and now stand at over 627 million at the time of writing.
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Furthermore, this was the highest level of CRV exchange reserves ever recorded, an all-time high.
This move indicated that most holders were selling off their holdings, which could further depress the price.