VOYAGER DIGITAL IS DOWN. WHO’S NEXT?
VOYAGER DIGITAL IS DOWN. WHO’S NEXT?
FTX CEO Sam Bankman-Fried says that he sees the light at the end of the tunnel and Elon Musk continues to promote Dogecoin
Coo! It’s me again, Crypto Owl. I feel like we all are witnessing very important changes in the crypto world during this super long, and turbulent bear market.
On Today’s Menu:
🍲 DELICIOUS GRANDMA’S SOUP: Voyager Digital files for bankruptcy
🍞 HOME-MADE BREAD: FTX CEO says that the worst days are left behind
🍬 CANDY: Elon Musk will be “supporting Doge wherever possible”
VOYAGER DIGITAL FILES FOR BANKRUPTCY
Unfortunately.
This means that the second well-known crypto broker Voyager Digital has finally failed. Voyager Digital will join the ranks of another failed and bankrupt exchange platform - Three Arrows Captial (3AC).
Highway to bankruptcy from the start:
All this started with the massive crash of Terra Luna, which led to a period of sell-offs. It shook the ground under Voyager's feet;
Then, Celsius Network joined the chaos by halting investors' funds’ withdrawals;
It caused a domino effect across the markets because a lot of crypto exchange platforms were related to Celsius Network (3AC, BlockFi, Vauld, etc.);
FTX CEO Sam Bankman-Fried offered his help by providing credit lines worth $500 million via Alameda Research, an associated company with FTX;
Voyager became the main and biggest Alameda creditor with $75 million worth of unsecured loans;
Voyager also had more than 100k creditors and assets between $1 billion and $10 billion;
The company disclosed that it had $661 million exposure to 3AC as well;
On 1st July, Voyager paused all its withdrawals, trading, and deposits. And now, it took the further step by filling for bankruptcy.
Voyager Digital CEO Stephen Ehrlich added some comments to Twitter:
And this:
This is just sad. Hopefully, this is the last crypto exchange that had to say “Game Over”.
FTX CEO SAYS THAT THE WORST DAYS ARE LEFT BEHIND, BUT ARE THEY REALLY?
This segment ironically matches the first one. Let me explain.
The newest reports revealed that Alameda Research (yes, the same one that belongs to Sam Bankman-Fried) owes bankrupt Voyager Digital $377 million. Quite a number, huh?
Isn’t it weird, that such information comes to the light after Voyager’s bankruptcy? The only details we know are: a $500 million loan from Alameda to Voyager, but this..?
Could it be the reason why such a huge debt, led, or at least contributed, to the bankruptcy of Voyager?
It wouldn’t be the first time, because as I wrote in previous newsletters, it is possible that Celsius Network was a victim of FTX, which might have caused serious liquidation problems.
On the other hand, Sam Bankman-Fried has a lot of confidence and stated that he sees the light at the end of the tunnel. Despite all the crypto exchanges that burn in liquidity hell, Bankman-Fried says that the worst is over. Hmmm, really, though?
Bankman-Fried continues to act like a superhero by “helping” other crypto exchanges by giving them loans. Even if he still has a few million that could be deployed, I personally feel suspicious about this whole situation.
FTX CEO said that “Having trust with consumers that things will work as advertised is incredibly important, and if broken, is incredibly hard to get back”. Well, yes. What if something shady will come out about Celsius or that debt for Voyager? Trust will be gone, just like those failed exchanges.
ELON MUSK WILL BE “SUPPORTING DOGE WHEREVER POSSIBLE”
From now on, Dogecoin will be accepted as payment for rides on the Las Vegas transit system called Loop.
If you’re not familiar with Loop, it belongs to Elon Musk’s Boring Company.
As Musk says, the main goal of Boring Company is to solve various traffic problems. Loop, or in some sources “Teslas in Tunnels”, is one of the projects to make this goal happen. The Loop differs from the traditional underground highways by being all-electric with zero emissions. That’s cool.
This project is still evolving and has only three stops. It's free now, but, in the future, alongside traditional payment, it will be able to pay with Doge. It’s just unclear when will it happen.
Consumers can already pay with Doge for Tesla’s merchandise. On top of that, there are plans to incorporate Doge to SpaceX, Starlink, and even Twitter. Sounds exciting. Dogecoin must explode in price when it all happens.
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Disclaimer: This newsletter is strictly educational. None of this information is intended to be financial advice. Always do your own research and act responsibly with your profits.