Shiba Inu is one of the most ubiquitous memecoin in the market today. Coingecko data notes a continuous upward momentum, with the token gaining nearly 8.3% in the weekly time frame with gains also made in the short periods.
However, these gains might be for naught as Voyager recently moved 270 billion SHIB to several exchanges, namely Binance US, Kraken, and CoinBase.
Voyager is a centralized exchange that went bankrupt due to the collapse of Three Arrows Capital, a crypto hedge fund that imploded back in June last year.
Recently, the exchange was slapped with a lawsuit by none other than FTX, another failed exchange that crashed this November, which is trying to gain back nearly $445.6 million in loan repayments to pay back its own creditors.
#PeckShieldAlert ~$9.6M worth of cryptos transferred from Voyager to crypto-exchanges Coinbase, Binance US and Kraken, including ~4.9M $VGX (~$2.1M), 221k $LINK ($1.5M), 3,050 $ETH (~$3M), 270B $SHIIB (~$3M) within the last 12 hours pic.twitter.com/fiTOfToujD
— PeckShieldAlert (@PeckShieldAlert) February 2, 2023
Voyager’s Struggling Boat
FTX and Voyager have a very interrelated history together. To have a glimpse of this relationship, looking at FTX’s lawsuit will be a must. According to the charges, the defunct exchange is trying to leverage the July 2022 loan payments that FTX made to Voyager.
FTX argues that since the payments were made at such a close date to the exchange’s collapse, it is then legal to recover the interest payments to pay back FTX creditors.
The filing also encompasses Alameda Research’s own loans on Voyager.
One of its address 0x500a still holds 6.8T $SHIB, making it the 18th largest holder of $SHIB pic.twitter.com/KZwAvBSElE
— PeckShieldAlert (@PeckShieldAlert) February 2, 2023
Totalling around $3 million, the 270 billion Shiba Inu might be Voyager’s answer to FTX’s lawsuit. According to PeckShieldAlert, one of Voyager’s wallets is sitting on 6.8 trillion SHIB, becoming the 18th largest whale of the token.
If FTX is successful in recouping the loan payments, we might see bigger transactions moving SHIB and other altcoins to exchanges which could set off a cascade of pain for SHIB and the market as a whole.
Investors Should Be Cautious On These Levels
With the large movement of Shiba Inu to exchanges, there is a chance this will be used to grab liquidity to pay off the $445.6 million lawsuit if Voyager loses.
The token is currently testing $0.00001226 resistance with support at $0.00001192 which may or may not break as it will be dependent if the billions of SHIB deposited to exchanges will be sold to the open market or not.
Investors and traders should be cautious and watch the current support level of Shiba Inu as 270 billion SHIB sold to the open market might push the token below $0.00001192.
If a large number of Shiba Inu is sold, the token might drive itself downwards to $0.00001117 or $0.00001038 support levels.
Featured image from Pirate Ship Vallarta
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