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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 traders, had been combating mounting debt and declining consumer progress.
Since then, Voyager has been in search of methods to lift capital and repay its collectors. In accordance with latest reviews, the corporate has turned to Coinbase, one of many largest cryptocurrency exchanges on the earth, to dump a few of its property and lift money.
On-chain information from Lookonchain, an impartial analytics agency, recommend that Voyager has despatched a minimum of $100 million in USDC to Coinbase within the final three days. The transfers, which began on February 24, included a mixture of cryptocurrency tokens, equivalent 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 at the moment value 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 US Securities and Trade Fee (SEC) has raised issues concerning the firm’s monetary stability and just lately 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 alternate, had did not show that it might adequately safeguard the property and shield the pursuits of Voyager’s collectors.
The transfer by Voyager to promote its property via Coinbase has sparked hypothesis amongst trade 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, equivalent 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.
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