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Trillions of Shiba Inu Held by Bankrupt Lender Raise Concerns of Sell-Off

Trillions of Shiba Inu Having a Risk of Sell-Off

Bankrupt crypto lender Voyager holds two trillion Shiba Inu tokens, potentially at risk of being sold, as it faces financial instability and ongoing liquidation efforts.

Key Points

  • Voyager, a bankrupt crypto lender, holds two trillion Shiba Inu (SHIB) tokens, making up 8.9% of its total holdings and potentially at risk of being sold.
  • Voyager has experienced a net outflow of $250 million in crypto assets since reopening withdrawals, indicating a possibility of asset liquidation.
  • Binance.US withdrew from an acquisition deal with Voyager, further impacting its financial situation and ability to compensate affected consumers.

Trillions of Shiba Inu (SHIB) are potentially at risk of being sold, according to the latest data from Dune Analytics. The data reveals that Voyager, a bankrupt crypto lender, holds two trillion SHIB, valued at $15.7 million. This accounts for 8.9% of Voyager’s total holdings and makes SHIB its fourth largest asset.

Potential Liquidation of Assets

Since reopening withdrawals on June 23, Voyager has experienced a net outflow of $250 million worth of crypto assets. Currently, the platform holds $176 million in crypto assets, with a Clean Asset ratio of 96.15%. This indicates a possibility of the bankrupt lender liquidating its assets to compensate affected consumers.

In comparison to previous reports, the amount of SHIB held by Voyager has decreased. Back in April, it was reported that Voyager held 3.1 trillion SHIB. The decrease in holdings suggests ongoing selling of SHIB and other assets by the lender.

Acquisition Deal with Binance.US Falls Through

In April, Binance.US withdrew from a deal to acquire Voyager’s assets for over $1 billion. This further impacted Voyager’s financial situation and raised concerns about its ability to compensate affected consumers.

Following the reopening of withdrawals on June 23, Voyager witnessed a significant outflow of $250 million in crypto assets. This marks a crucial step for the bankrupt crypto lender, as it allows investors to access their funds.

Gradual Recovery after Chapter 11 Bankruptcy

Voyager had previously filed for Chapter 11 bankruptcy and ceased processing deposits and withdrawals. However, with the recent reopening of withdrawals, the platform aims to recover gradually and provide creditors with the opportunity to withdraw around 35% of their cryptocurrency.

Presently, Bitcoin constitutes the largest portion of Voyager’s assets, accounting for 39.1% or $69 million. Ethereum and USD follow closely, representing 28.9% ($51 million) and 10.6% ($18.6 million) of the holdings, respectively.

Future of SHIB Holdings

With Voyager’s ongoing liquidation efforts to raise liquid funds, the two trillion SHIB tokens held on the platform face a potential risk of being sold. This situation calls for continued monitoring of market dynamics and potential impacts on SHIB’s value.

In conclusion, the significant amount of SHIB held by Voyager, coupled with its financial instability, raises concerns about a potential sell-off. As Voyager continues to liquidate assets, including SHIB, affected consumers and the crypto market will need to closely monitor the developments to navigate potential risks.