Voyager’s Crypto Fire Sale: SHIB, ETH, and More Hit Coinbase as Binance.US Deal Nears

The crypto world is witnessing another chapter in the ongoing saga of Voyager Digital, the bankrupt cryptocurrency lender. If you’ve been following the market closely, you’ve likely heard about Voyager’s financial troubles. Now, as part of its restructuring efforts, Voyager is actively selling off significant portions of its cryptocurrency holdings. Among the digital assets being offloaded are meme-favorite Shiba Inu ($SHIB), along with crypto heavyweights like Ethereum ($ETH), Voyager Token ($VGX), and Chainlink ($LINK). And where are these assets going? Primarily to Coinbase, the Nasdaq-listed cryptocurrency exchange.

Voyager’s Asset Liquidation: What’s Happening?

Let’s break down what we know. Recent data from Lookonchain, a blockchain analysis platform, reveals some interesting movements. It appears that Wintermute Trading, along with major exchanges Binance US and Coinbase, have collectively injected a substantial 33,700,000 USDC into Voyager. Despite these transactions and ongoing asset sales, Voyager still holds a considerable $757.8 million in assets. This includes a hefty 459.8 million USDC and a staggering 4 trillion SHIB tokens. It seems Voyager is strategically managing its remaining portfolio while navigating the complexities of bankruptcy.

Voyager’s activity on Coinbase isn’t new. They’ve been consistently moving funds to the exchange, indicating a deliberate strategy for asset liquidation. Just recently, Voyager transferred:

• 15,000 Ethereum (ETH) valued at approximately $25.3 million to Coinbase and Binance.
• 300 billion Shiba Inu (SHIB), worth around $3.4 million, directly to Coinbase.

This pattern of transfers to Coinbase dates back to February 14th. Since then, the numbers are quite significant. Voyager has moved a massive 2.24 trillion SHIB, translating to about $28 million, to Coinbase. Despite this substantial outflow, they still maintain a large reserve of assets, as mentioned earlier. This ongoing selling pressure could be a factor influencing the price of these cryptocurrencies, particularly SHIB.

Customer Approval and the Binance.US Deal: A Ray of Hope?

Amidst the asset sales and bankruptcy proceedings, there’s a crucial development regarding Voyager’s future. A significant majority of Voyager’s customers – a resounding 98% representing the vast majority of claims – have voted in favor of a restructuring proposal. This proposal centers around Binance.US, the US-based arm of the global crypto exchange giant Binance, acquiring a substantial portion of Voyager’s assets.

Voyager’s bankruptcy filing dates back to July 2022, a period of intense market volatility and several high-profile crypto collapses. Earlier this week, Voyager secured a significant win: court clearance to proceed with selling its assets and transferring its customer base to Binance.US. The deal on the table is a substantial $1.3 billion agreement. However, it’s not a done deal just yet. Several legal hurdles and regulatory requirements still need to be cleared before the sale can be finalized.

US bankruptcy judge Michael Wiles gave the green light to Voyager’s restructuring plan, built around the Binance.US acquisition, at a hearing in New York. The terms of the agreement are designed to provide some relief to Voyager’s creditors. Binance.US has agreed to inject $20 million in cash and also return cryptocurrency assets that were initially deposited by Voyager users. This is potentially good news for Voyager customers who have had their funds locked up during the bankruptcy process.

What Does This Mean for Crypto Investors, Especially SHIB Holders?

Voyager’s asset liquidation and the impending Binance.US deal have several implications for the cryptocurrency market and investors:

• Selling Pressure: The continued sale of assets like SHIB and ETH by Voyager adds selling pressure to these markets. Large sell-offs can temporarily depress prices, creating potential buying opportunities or further downside depending on market sentiment.
• Market Confidence: The Voyager saga highlights the risks associated with centralized crypto lenders. While the Binance.US deal offers a potential resolution for Voyager customers, it also serves as a reminder of the importance of due diligence and risk management in crypto investments.
• Binance.US Expansion: For Binance.US, acquiring Voyager’s assets and customer base represents a significant expansion in the US market. It could strengthen their position as a major player in the competitive US crypto exchange landscape.
• SHIB Investor Sentiment: Interestingly, data suggests that Shiba Inu investors tend to hold onto their tokens for the long term. The average holding period on Coinbase for SHIB has surpassed 230 days. This indicates a strong belief in SHIB’s future potential among its holders, suggesting that most SHIB investors are unlikely to panic sell even amidst Voyager’s large transactions.

The situation remains dynamic, and the finalization of the Binance.US deal is still pending. However, the court approval and customer support are positive steps towards resolving the Voyager bankruptcy and potentially returning some value to its affected users. Keep an eye on further developments as this story unfolds, as it could have ripple effects across the crypto market, particularly for assets like SHIB, ETH, and VGX.

As Voyager navigates this complex restructuring, it’s a crucial reminder of the volatile nature of the cryptocurrency market and the importance of staying informed and making responsible investment decisions.