Voyager Digital, a bankrupt crypto brokerage, has been actively offloading its remaining cryptocurrency holdings from centralized exchanges. In its latest move, the company transferred millions of dollars’ worth of SHIB and ETH tokens to Coinbase on August 11th, according to on-chain data. This strategic shift in assets could have implications for the prices of these cryptocurrencies and the broader market.
Voyager’s Asset Transfers to Coinbase:
Voyager Digital has been steadily liquidating its crypto assets since the beginning of the year. Recent on-chain transactions reveal that the company transferred a total of $5.5 million worth of cryptocurrency to Coinbase. The transfers consisted of 1,500 ETH, split between two transactions. Prior to being sent to Coinbase, 1,000 ETH and 500 ETH, valued at $2.77 million combined, were moved to separate wallets. Additionally, 250 billion SHIB, with a value of $2.7 million, was also transferred to Coinbase.
Consolidation of Assets and Customer Reimbursement:
The data indicates that Voyager is consolidating its remaining token holdings into its primary address, suggesting a preparation for further asset movements. Voyager’s primary objective is to reimburse its customers, albeit partially, following its bankruptcy and subsequent approval to wind down operations. The company’s bankruptcy was triggered by the failure of crypto hedge fund Three Arrows Capital, which left Voyager with a $665 million loan unpaid. Court-approved proceedings aim to repay locked customer assets over a period of time.
Impact on SHIB and ETH Prices:
The recent large-scale transfers of SHIB and ETH tokens from Voyager to Coinbase could potentially lead to increased selling pressure for these cryptocurrencies. If Coinbase chooses to sell these tokens on the open market, the influx of supply may outpace demand, resulting in downward price pressure. Currently, SHIB has exhibited a strong 15.55% increase in value over a 7-day timeframe, while ETH has been hovering around $1,850.
Voyager Digital’s strategic move to transfer millions in SHIB and ETH tokens to Coinbase is part of its ongoing efforts to reimburse customers and manage its remaining assets. As these transfers potentially introduce selling pressure to the market, investors and enthusiasts will be closely watching the impact on cryptocurrency prices, especially for SHIB and ETH. The evolving situation underscores the interconnected nature of the cryptocurrency ecosystem and the ripple effects of significant asset movements.