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Curve DAO Token (CRV) Nears Liquidation Price of $0.37

Published 23/08/2023, 06:48
Curve DAO Token (CRV) Nears Liquidation Price of $0.37

  • The Curve DAO Token (CRV) recently reached an all-time low price of $0.45.
  • CRV is nearing the $0.37 mark which will trigger the liquidation of the loans taken by Curve’s founder.
  • Crypto influencers on X are estimating the liquidation price to be at around $0.29.

The price of the Curve DAO Token (CRV) reached an all time low of $0.45 earlier today. The token’s recent decline has taken it dangerously close to the $0.37 mark, which will trigger the liquidation of multiple CRV-backed loans taken by Curve Finance’s founder Michael Egorov. Although Egorov made efforts to control CRV’s decline, the token’s price continued to fall.

Popular crypto trader Hsaka took to X (formerly Twitter) earlier today to highlight that the Curve DAO Token was rapidly approaching the $.40 mark. This price level is of particular importance, since Michael Egorov sold CRV to 15 different institutions earlier this month in a bid to support the token’s price following last month’s exploits.

Egorov sold nearly 210 million CRV worth $85 million at an average price of $0.4 in multiple over the counter (OTC) trades. These tokens represented a quarter of CRV’s circulating supply. Interestingly, the tokens had handshake agreements for lockups, meaning there was nothing concrete to stop the buyer from market dumping the tokens. Hsaka claimed that several buyers had already moved their CRV to centralized exchanges.

The decision to move CRV to CEXs may be in preparation to eventually sell the tokens in case it continues to decline further. A crypto influencer who goes by BearNakedCrypto on X told his followers that the CRV liquidation price was likely around $0.29, rather than the $0.37 mark that was projected earlier.

At the time of writing, CRV was trading at $0.459, down more than 4% over the past 24 hours. The token had a market capitalization of $388 million, which was down 28% since the beginning of the month. Meanwhile data from on-chain analytics firm Coinglass showed that CRV traders lost more than $300,000 to liquidations over the past 24 hours.

The post Curve DAO Token (CRV) Nears Liquidation Price of $0.37 appeared first on Coin Edition.

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