Binance, the main digital forex trade, went on a bidding battle towards Billionaire Sam Bankman-Fried’s FTX crypto trade to amass a bankrupt crypto lending platform Voyager Digital’s frozen belongings.
The Successful Bid
In response to a Wall Avenue Journal’s Tuesday’s publish on the identical, Binance at the moment holds the successful Bid and is prepared to pay round $50 million for the belongings. This determine is barely increased than that of FTX digital forex trade. FTX trade was initially the best bidder earlier than Binance’s mega Bid. Earlier this 12 months, Voyager dropped the FTX’s bid, claiming that Sam Bankman’s Bid was “a low-ball bid dressed up as a white knight rescue”.
The Crypto Market Crash
Binance and FTX seemingly appear untouched by the on-going uncertainty within the cryptocurrency markets. They proceed to make headlines on large strikes within the crypto world. Nevertheless, entities like Coinbase, a safe on-line platform for getting, promoting, transferring and storing digital belongings, have struggled to keep up operations. Coinbase just lately slashed 1,100 staff off its payroll to restructure the group amidst the on-going crypto market crash.
Different entities like BlockFi and Crypto.com have additionally lowered their workers numbers considerably, with the present crypto bearish volatility accountable.
Voyager and different cryptocurrency lenders rose to fame in the course of the COVID-19 pandemic by engaging retail and institutional traders to deposit funds with them. The high-interest charges promised to depositors and quick and easy-to-access loans supplied by such monetary platforms had been under no circumstances near those supplied by the standard centralized banking techniques.
Sadly, the on-going bearish sentiment of the markets has been occurring for months, wreaking havoc on depositors (traders and establishments). Voyager Digital crypto lending platform blames the Singapore-based cryptocurrency hedge fund, Three Arrows Capital, for its chapter. Three Arrows Capital owed greater than $650 million to Voyager earlier than the establishment additionally filed for chapter.
Three Arrows Hedge Fund went down with greater than $10 billion deposited to the hedge fund for digital forex investments.
The bankrupt brokerage additionally overtly said in its chapter submitting to the Courtroom of Legislation that it owed greater than $75 million to Billionaire Sam Bankman, one of many events curious about Voyager’s liquidation, and $960 million extra to Google.
Voyager Digital’s incident exhibits how dangerous the cryptocurrency markets aren’t solely to retail traders but in addition to institutional-sized hedge funds.
The Battle Continues
In response to Wall Avenue Journal, no bid, together with Binance’s highest to this point, has been accepted by the lending platform. It’s nonetheless unclear who will get the successful Bid on Voyager’s frozen belongings. The bidding warfare continues to be anticipated to proceed as increased bids flood the public sale.