Voyager Digital, the New York-based centralized finance (CeFi) platform, filed for Chapter 11 chapter in July 2022 after it did not safe a brand new line of credit score. The corporate, which supplies cryptocurrency buying and selling providers for retail and institutional buyers, had been scuffling with mounting debt and declining consumer progress.
Since then, Voyager has been looking for methods to boost capital and repay its collectors. In line with latest stories, the corporate has turned to Coinbase, one of many largest cryptocurrency exchanges on the earth, to dump a few of its belongings and lift money.
On-chain information from Lookonchain, an impartial 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, corresponding to Ether, Shiba Inu, and Chainlink.
Regardless of the sell-off, Voyager nonetheless holds a considerable quantity of crypto belongings, with a complete worth of almost $530 million. Nearly all 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 buyers.
Nonetheless, the destiny of Voyager’s remaining belongings is unsure. The US Securities and Alternate Fee (SEC) has raised considerations in regards to the firm’s monetary stability and lately objected to Binance.US’ proposed acquisition of over $1 billion in belongings belonging to Voyager.
The SEC argued that Binance.US, which is a subsidiary of the world’s largest cryptocurrency trade, had did not show that it might adequately safeguard the belongings and shield the pursuits of Voyager’s collectors.
The transfer by Voyager to promote its belongings by Coinbase has sparked hypothesis amongst business analysts about the way forward for centralized finance and the position 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, corresponding 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 unstable world of cryptocurrency buying and selling.
