Main Takeaway: Another Bankruptcy
It was just confirmed that crypto lending firm Voyager Digital has filed for Chapter 11 bankruptcy. The company was subsequently suspended from trading on the Toronto Stock Exchange. In March 2022, Voyager had approximately $6 billion in assets, but due to the market crash plus a $655 million loan to 3AC that failed to repay, the company is now deeply insolvent.
Moreover, yesterday Celsius paid off another $40.8 million loan, thus dropping its liquidation price to $2,700. However, there are many people in the industry saying that Celsius is next.
The main takeaway is it’s hard to be bullish amidst these ongoing bankruptcies from Voyager, 3AC, and others. Stay in safe assets.
Investor Insights: Markets Still Rise
Yesterday we reported the rising Dollar, dropping oil prices, falling gold spot prices, and high inflation in the EU, however, despite these signals the cryptocurrency markets pulled off a 3% increase – with many people calling June’s inflation numbers and economic situation the bottom. While this may be true, investors and traders will have to see what the US Fed signals in this month’s FOMC. If the Fed slows down rate hikes, this will be a breath of fresh air for the crypto markets. However, the DeFi industry has really taken a hit these past two months, and it will take up to a year at least for it to recover and regain lost trust.