Curve (CRV) Price Hits 1-Year Low Amid Imminent Liquidation
The governance token CRV of decentralized autonomous organization Curve (DAO) plummeted 12% on June 15th as founder Michael Egorov's risky loans in Aave surfaced.
Egorov deposited 431 million CRV, equivalent to $246 million, in decentralized lending protocols, borrowing $101.5 million in stablecoins. This constitutes 50.5% of CRV's circulating supply.
Aave poses a $107 million liquidation risk for CRV if its value falls below $0.37. Despite this, negative bets have surged, fueling a potential short squeeze and a rapid price recovery. CRV faces uncertainty but may experience short-term upside movement.