The Shiba Inu price could continue to face heavy selling pressure within the coming weeks as bankrupt cryptocurrency lender Voyager Digital keeps transferring large amounts of cryptocurrencies to Coinbase, likely to cash them out. Voyager currently still owns $631 million worth of crypto assets, with SHIB accounting for the third highest value.
A few hours ago, blockchain intelligence firm PeckShield shared a scoop that Voyager has once again sent cryptocurrencies to Coinbase to boost its liquidity. PeckShield Alert stated via Twitter that Voyager transferred 300 trillion SHIB worth $3.7 million, as well as 4,000 ETH worth $6.6 million and 5 million VGX worth $2 million to Coinbase.
Notably, the address that made the transfer to Coinbase received 68 trillion Shiba Inu, about $820,000, from a dormant 0x31FC address shortly before the transfer. This address had received these 68 trillion SHIB two years ago at a price of $528 and had held them since then.
#PeckShieldAlert Voyager has transferred 4k $ETH ($6.6M), 300B $SHIB ($3.7M) & 5M $VGX ($2M) to Coinbase
Before transferring out, Voyager received 68B $SHIB (~820k) from a dormant address 0x31FC. The address had received 68B $SHIB 2 years ago (~$528 at the time of transfer) pic.twitter.com/iV7vFrykxT
— PeckShieldAlert (@PeckShieldAlert) March 2, 2023
PeckShield also revealed that a Voyager-labeled address received around $50 million USDC from Coinbase in the last few hours. As Bitcoinist reported, this seems to confirm and extend the sell-off of Voyager assets.
Just a few days ago, blockchain tracking firms Arkham and Lookonchain reported that Voyager received $100 million USDC from Coinbase within the last week. Moreover, Voyager has sent assets to Coinbase almost every day since February 14.
As for Shiba Inu, Voyager had transferred 2.24 trillion SHIB, the equivalent of about $28 million, to Coinbase since February 14. Prior to today’s sale, the bankrupt crypto lender’s holdings still included 6.5 trillion SHIB, roughly $81 million. Voyager’s SHIB holdings are topped only by Ethereum with 172,223 ETH ($276 million) and 186 million USDC.
Shiba Inu Price Dump Incoming?
The price of Shiba Inu has been on a downward slide since the beginning of February and the fear of a big sell-off by Voyager seems to be weighing heavily on sentiment at the moment. If Voyager were to sell off all of its Shiba Inu coins, worth around $77.3 million, it would be a massive sell pressure that is likely to cause the price to plummet.
The development also comes at a time when Shiba Inu is about to launch the beta version of its layer 2 network Shibarium. Thus, on the one hand, there is the potential for a strong move north, and on the other hand, there is the risk of a Voyager dump down south.
However, it is not yet clear whether there will be a sell-off. Voyager filed for bankruptcy in July 2022 after Three Arrows Capital, the previous backers, failed to repay $650 million in loans. Currently, BinanceUS is fighting for its right to acquire the company.
If Voyager holds on to its Shiba Inu until Binance takes over the company and receives regulatory green light, a sell-off could be avoided. Recently, it was revealed that account owners of Voyager agreed with a majority vote in favor of the takeover by BinanceUS.
The crypto exchange submitted a $1.022 billion offer in December 2022. However, there are regulatory headwinds to the acquisition. Both the U.S. Securities and Exchange Commission (SEC) and local authorities in the state of Texas raised concerns.
At press time, SHIB was trading at $0.00001194, struggling to hold key support at $0.000012 in the 1-day chart.
SHIB price, 1-day chart | Source: SHIBUSD on TradingView.com
Featured image from Currency.com, Chart from TradingView.com
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Author: Jake Simmons