- Voyager sheds nearly 1.4 trillion SHIB on Coinbase during bankruptcy liquidation; the coin’s value dips 9% in a day.
- An unknown whale transfers trillions of SHIB shortly after the project’s layer-2 solution, Shibarium, launches.
Voyager’s SHIB Liquidation: What’s Behind the Move?
Voyager, the crypto lending firm mired in financial challenges, is systematically liquidating its digital assets. One of its more notable actions, as per on-chain data from Lookonchain, has been the sale of a staggering 1.4 trillion Shiba Inu (SHIB) tokens on the US digital asset exchange, Coinbase. This move amounts to roughly $14.4 million, with SHIB’s current valuation at $0.0000093, indicating a decline of over 9% in just one day.
Apart from SHIB, Voyager has offloaded other cryptocurrencies including:
- 781 Bitcoin (BTC) valued at $22.97 million
- 9,570 Ethereum (ETH) worth around $17.64 million
- 234,660 Chainlink (LINK) estimated at $1.74 million
- 1.86 million Polygon (MATIC) approximated at $1.27 million
- 3.006 million Decentraland (MANA) pegged at $1.1 million
This sell-off spree can be attributed to Voyager’s ongoing bankruptcy challenges. After filing for Chapter 11 bankruptcy protection last July – a result of a default by its major client, Three Arrows Capital, on loans close to $650 million – Voyager planned to sell its assets to Binance’s US arm. However, unforeseen regulatory obstacles led Binance.US to retract their purchase agreement.
Shiba Inu’s Layer-2 Launch and the Whale Activity
As Voyager’s liquidation unfolded, Shiba Inu witnessed another significant event. An unidentified SHIB whale transferred an eye-watering 4.654 trillion SHIB tokens (equivalent to about $40.7 million) from one undisclosed wallet to another. This hefty transfer aligns conspicuously with the launch of Shibarium, Shiba Inu’s new layer-2 scaling solution.
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While such launches typically herald optimism, Shibarium’s debut encountered unexpected hiccups. The layer-2 platform was swamped with a vast user influx leading to certain technical glitches. Reflecting on this, Shytoshi Kusama, SHIB’s lead developer, conveyed surprise at the overwhelming traffic, acknowledging the unforeseen challenge they faced.
Concurrently, SHIB’s price exhibited a 10.6% drop, trading at $0.000009. In addition, Bone ShibaSwap (BONE) – the native asset utilized for Shibarium’s transaction fees – also saw its price drop by 17% within a day, trading at $1.22.
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