Voyager Digital, the New York-based centralized finance (CeFi) platform, filed for Chapter 11 chapter in July 2022 after it didn’t safe a brand new line of credit score. The corporate, which offers cryptocurrency buying and selling providers for retail and institutional traders, had been fighting mounting debt and declining consumer progress.
Since then, Voyager has been in search of methods to lift capital and repay its collectors. Based on latest reviews, the corporate has turned to Coinbase, one of many largest cryptocurrency exchanges on the planet, to dump a few of its property and lift money.
On-chain information from Lookonchain, an unbiased analytics agency, counsel that Voyager has despatched at the least $100 million in USDC to Coinbase within the final three days. The transfers, which began on February 24, included a mixture of cryptocurrency tokens, comparable to Ether, Shiba Inu, and Chainlink.
Regardless of the sell-off, Voyager nonetheless holds a considerable quantity of crypto property, with a complete worth of practically $530 million. The vast majority of its holdings are in Ether, which is presently price round $1,500 per coin, and Shiba Inu, a meme-inspired token that has gained a cult following amongst retail traders.
Nonetheless, the destiny of Voyager’s remaining property is unsure. The USA Securities and Trade Fee (SEC) has raised considerations concerning the firm’s monetary stability and not too long ago objected to Binance.US’ proposed acquisition of over $1 billion in property belonging to Voyager.
The SEC argued that Binance.US, which is a subsidiary of the world’s largest cryptocurrency trade, had didn’t show that it may adequately safeguard the property and defend the pursuits of Voyager’s collectors.
The transfer by Voyager to promote its property by Coinbase has sparked hypothesis amongst business analysts about the way forward for centralized finance and the function of crypto exchanges in offering liquidity for struggling platforms.
Whereas the crypto market has seen a resurgence in investor curiosity and rising valuations for main tokens, comparable to Bitcoin and Ethereum, the destiny of smaller gamers like Voyager stays unsure. The corporate’s chapter submitting and subsequent asset gross sales spotlight the dangers and challenges of working within the quickly evolving and risky world of cryptocurrency buying and selling.