Voyager's token transfer to Coinbase grows selloff suspicions

Bankrupt cryptocurrency lender Voyager Digital transferred 1,500 Ethereum (ETH) valued at around $2.77 million and an additional 250 billion Shiba Inu (SHIB) equivalent to $2.7 million to the Coinbase Exchange.

Based on blockchain data, Voyager initiated the transfer of SHIB and ETH tokens to Coinbase's ledger on August 11. The motive behind these transactions has triggered more speculation within the larger crypto community. One theory suggests a probable sell-off, given that these recent transfers have diminished the distressed crypto lender's wallet holdings to a mere $81.63 million worth of digital assets.

Significantly, these transactions occurred at a one-hour interval, as indicated by Etherscan records. The abrupt movement of these tokens has triggered discussions regarding a possible liquidation. However, certain sources assert that Voyager Digital is presently in the process of consolidating all tokens from various addresses into a primary address.

The speculation of a sell-off gains additional support from Voyager Digital's ongoing trend of divesting its SHIB holdings since the start of this year. In February, the company executed transfers of nearly $10 million worth of digital assets to multiple cryptocurrency exchanges within a single day.

The tokens moved include 270 billion SHIB, valued at $3.2 million, 4.9 million Voyager Tokens (VGX) with an estimated worth of $2.1 million, 3,050 ETH equating to $3 million and 221,000 Chainlink (LINK) amounting to approximately $1.5 million. It's important to highlight that these valuations corresponded to the tokens' market values during the time of the transfer.

Related: Voyager customers targeted by scammers during 30-day withdrawal period: Report

Following Binance U.S.'s court-sanctioned acquisition of the lender's assets, blockchain analysis platform Lookonchain disclosed that Voyager liquidated digital holdings exceeding $56 million across three cryptocurrency exchanges. Approximately three months later, the insolvent exchange engaged in various transactions involving the transfer of around 350 billion Shiba Inu tokens.

The substantial SHIB transfer to Coinbase appears to have a relatively modest effect on community sentiment regarding potential sell-offs and their consequences.

Magazine: Deposit risk: What do crypto exchanges really do with your money?

Source Link