Looks like the forced hodl club just got a new member, it started with Celsius, then CoinFlex and now it looks like Voyager has thrown in the towel and basically admitting it cannot handle a bank run and pay back all its customers.
Like BlockFi, Voyager seems to have taken quite the ding to their balance sheet as they were exposed to the woes of Three Arrows Capital Ltd., the failing crypto hedge fund that was ordered for liquidation by a British Virgin Islands court and filed for Chapter 15 bankruptcy protection in New York.
We don't know the exposure
At this point in time, each of these CEFI lenders has a different level of obligations to customers and exposure to losses so we cannot say the extent of Voyagers issuers yet.
Voyager is also listed on the Toronto stock exchange and its share price has not been doing too well either, so how much equity they have left to dig them out of this hole is anyone's guess.
Voyager stock price
A saving grace could be the BlockFi deal, given the fact that it seems to have been saved by FTX, which could embolden others to try and save Voyager. If you look at the fact that Nexo, FTX and Bnktothefuture are so keen to save Celsius, then there is clearly an appetite to pick up these companies for pennies on the dollar.
Now there will be some that don't get saved, my guess would be that would be Celsius the way things are going, but the future is anyone's guess.
Get rid of your exposure
If you're A Voyager user and this experience has taught you a valuable lesson and you're keen on getting rid of your Voyager account you can find instructions here
This won't be the end, anytime soon
I don't see these markets turning around anytime soon and with more downside on the way, I think this gets worse before it gets better.
What I do think is a few people will learn that self-custody is the best return and that chasing yield is a waste of time, and that the safety of their funds is worth more than netting a return.
The sad thing is people have short memories and 0nce this is all over, people will STILL use the services that remain, there will always be pigs that are willing to get slaughtered.
Some people are just gluttoned for punishment so who am I to stop them?
As for the companies involved, how the story will end, is anyone's guess
Sources:
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, "I am a Jessie."
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