Curve Token Under Pressure: Founder Forced To Sell $677,000 of CRV
Following the hack in July 2023, the CRV token has been experiencing significant selling pressure. The recent forced liquidations of Michael Erogov’s loans have further exacerbated the situation for token holders, leading to a significant drop in value.
Founder’s Liquidation Impacts CRV Price
After the forced liquidation in mid-June, which caused prices to plummet below $0.30, data revealed that Erogov was compelled to sell a substantial amount of CRV in the market to repay a portion of his loan. On July 25, Lookonchain data indicated that Erogov was liquidated for $677,000 worth of CRV.
- CRV token continues to experience downward pressure
- Price decline not as rapid as in June, but token remains weak
Support and Resistance Levels for CRV
- Current support at double bottom of $0.21
- Resistance level at $0.30
In an interesting turn of events, the $0.30 resistance level that served as support in June when prices crashed due to Erogov’s liquidations. The fear of further destabilization of the protocol due to the founder’s loans negatively impacted CRV holders across the crypto market.
On-chain data indicates that Erogov had borrowed approximately $100 million in stablecoins, using $140 million in CRV as collateral. There are reports suggesting that the founder may have invested in prime real estate with this loan.
Hopes Rest on Ethereum ETFs and Community Efforts
Since the hack in July 30, the CRV token has witnessed a sharp decline of over 50%. With overall crypto prices also retracing from their peaks in March 2024, holders are facing challenging times.
The launch of Solana and USDT on Ethereum aims to promote cross-chain activities and offer additional incentives for liquidity providers to enhance the ecosystem.
Hot Take: CRV Token Faces Continued Selling Pressure
As the selling pressure on the CRV token intensifies following the forced liquidation of Michael Erogov’s loans, holders are bracing themselves for further price declines. The recent offloading of CRV by the founder has added to the downward momentum, raising concerns among investors. While hopes are pinned on the introduction of spot Ethereum ETFs and community initiatives, the immediate outlook remains uncertain for CRV. Holders are advised to monitor the situation closely and stay informed about any developments that may impact the token’s value.
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