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The recent Market downturn has not only resulted in cryptocurrencies’ price drop but also many firms losing their ground
As if the crypto space has not already been through enough where another not so good news came out, this time from Voyager Digital. Crypto lender Voyager Digital announced on Friday about the platform’s suspending its operations related to withdrawals, deposits and trading while saying that the firm is continuously exploring new and strategic alternative ways that could help in preserving the assets available on the platform.
Voyager Digital took this step after a while of its previous action of issuing loan default notice to Three Arrows Capital. This came in the wake of the failure of prominent crypto hedge funds repaying its required loan payments to the crypto lender firm. Chief Executive Officer of Voyager Digital, Stephen Ehrlich said that this company move would buy it more time to explore further strategic alternatives that would include different parties interested in the same.
In a press release, Voyager Digital said that it had hired financial advisors, Moelis & Company and Consello Group and legal advisors, Kirkland & Ellis LLP that would support the crypto lending firm in exploring strategic alternatives. Further, the New Jersey-based crypto firm stated that it had overall crypto assets holding of worth $685 million which is however lower than the total loaned amount of more than $1.12 billion.
Voyager has specifically lent 15,250 bitcoin (BTC) and $350 million to Three Arrows Capital. Various reports claimed that a hedge fund firm has entered into the liquidation firm. Further, on 22nd June, Voyager Digital signed an agreement for a revolving credit line with Sam Bankman Fried’s Alameda Ventures that will make additional capital amount accessible for the crypto lending platform that would help it meet its liquidity needs of customers as prices of cryptocurrency take a hit.
Earlier, yet another crypto lender protocol, Celsius, had also halted its operations including withdrawals and deposits on the platform given the extreme market crash. That move from Celsius made its users face a lot of toil, which was expected to stay for the short term, but it was almost going to be the whole month, but the operations are still frozen.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
