In a surprising move that has sent shockwaves through the crypto community, Voyager Digital, a struggling crypto lender facing bankruptcy, has transferred nearly $6 million worth of Ethereum and Shiba Inu tokens to Coinbase, resulting in a significant drop of around 5% in SHIB’s price over the last 24 hours.
Voyager’s Substantial Holdings Raise Alarms
At the center of this development is the fact that Voyager holds an astonishing trillion Shiba Inu tokens, a staggering quantity that has triggered concerns regarding the potential consequences of unloading such a massive amount of the token onto exchanges. The transfer to Coinbase, a prominent cryptocurrency exchange, has only deepened these concerns.
Recent data from the Arkham Intelligence dashboard reveals a series of transactions made by Voyager over the past few days. Notably, these transactions involve digital assets including Ethereum, Shiba Inu, and USDC being transferred to Coinbase deposit addresses. The most recent of these transactions saw 1,500 ETH and 250 billion SHIB tokens being moved to Coinbase.
Analysts and market observers have interpreted these transactions as signs that the beleaguered firm might be consolidating its assets into a central address, potentially signaling its intention to sell off these cryptocurrencies in the near future. This move comes on the heels of the expiration of Voyager’s 30-day withdrawal window, during which users were permitted to withdraw a portion of their assets prior to the firm’s planned liquidation of the remaining holdings. Reports indicate that users withdrew more than $250 million from the platform in July, adding to the platform’s already tumultuous situation.
Challenges Loom as Liquidation Nears
As Voyager progresses to the next phase following the withdrawal window, it is now poised to liquidate its remaining assets in exchange for stablecoins. This impending liquidation, however, raises concerns of potential selling pressure, particularly for cryptocurrencies like Shiba Inu and Ethereum.
Arkham Intelligence’s data reveals that Voyager currently holds a crypto portfolio valued at $93.7 million, with a diverse array of assets. Among these holdings are 1.046 trillion SHIB tokens, valued at over $11 million, and more than 5,000 ETH, worth in excess of $10 million. The firm’s portfolio also includes its native VGX token, Bitcoin, and additional Shiba Inu tokens.
SHIB Rally Takes a Hit
Voyager’s transfer of SHIB tokens to Coinbase has abruptly halted the recent rally enjoyed by the meme coin. Over the past week, Shiba Inu had notably outperformed the broader crypto market, experiencing a remarkable price surge of over 20%. However, the asset’s value dipped by 5% within the last 24 hours, according to data from BeInCrypto.
Despite this setback, Shiba Inu’s ecosystem remains active and full of anticipation for the upcoming launch of its Shibarium layer-2 network. The network’s testnet has garnered significant attention and engagement from the crypto community. Additionally, the coin’s developers have teased a series of forthcoming partnerships designed to enhance the token’s utility and potential value.
As the crypto world closely watches Voyager’s next moves and their potential impact, the broader market continues to navigate the intricate balance between hype, investor sentiment, and fundamental developments in an ever-evolving landscape.