With over 19,000 cryptocurrencies, the cryptocurrency industry likens the market to the early days of the Internet. However, industry players have said that most of these coins will collapse.
Nurphoto | Getty Images
Digital Asset Brokerage Voyager Digital has suspended all client transactions, deposits, withdrawals, and loyalty rewards. According to the statement Released on Friday afternoon..
Stephen Erich, CEO of lending company Voyager, said:
Erlich further said that this decision aims to give the company additional time to continue “investigating strategic alternatives with various stakeholders” and to provide additional information “at the right time”. Said to provide.
Voyager’s announcement is in the midst of numerous margin claims and defaults across the sector, making digital brokers the latest incidental damage to the widespread market sale of cryptocurrencies. The two most widely traded cryptocurrencies, Bitcoin and Ether, have fallen by more than 70% from their peak in November last year, and the May collapse of UST Stablecoin is already in a turbulent market. I sent a shock wave.
The news came a few days after one of Voyager’s customers failed to pay a loan worth hundreds of millions of dollars, raising concerns about the contagious effects of bankruptcy across the industry.
Monday, broker Issued a notification Its prominent crypto hedge fund, Three Arrows Capital (3AC), has defaulted on loans worth more than $ 670 million. At that time, Voyager said it would pursue recovery from 3AC, while continuing to execute and fulfill customer orders and withdrawals.
As of June 24, Voyager said it owns about $ 137 million in US dollars and owns crypto assets. The company also has access to a $ 200 million credit line in cash and USDC stable coins, as well as 15,000 Bitcoins ($ 318 million) from FTX founder Sam Bankman-Fried’s quantitative trading company Alameda Ventures. I also noticed that I can access the revolving credit line of).
last weekAlameda has funded Voyager $ 500 million and the company has already withdrawn $ 75 million from its credit line, but it seems insufficient to continue its business as usual.
So far, the two largest crypto investors in the world by market capitalization seem to be unaffected by the news. Bitcoin Increased by about 2% Ethereum It has risen by more than 4% towards the end of normal market time on Wall Street.
Voyager is a competitor to crypto lender BlockFi and is also involved in the crosshairs of the recent liquidity crisis in the sector. FTX has just signed a $ 680 million credit agreement to acquire BlockFi. According to the block..
Voyager’s decision tracks the decision of Celsius, a popular cryptocurrency staking and lending platform. Paused all withdrawals as well, Swaps, and transfers between accounts due to “extreme market conditions” on June 13. Celsius has not yet released specific guidance on the next steps.