3.1 Trillion Shiba Inu at Serious Selloff Risk, Here’s Why

Binance.US recently backed out of the deal to acquire Voyager’s assets, including over 3.1 trillion Shiba Inu tokens, leaving them at risk of a selloff.

The crypto space might see over 3.1 trillion Shiba Inu (SHIB) tokens dumped into the market along with other tokens, as Binance.US, the American counterpart of Binance, recently pulled out of the deal to acquire bankrupt Voyager’s assets for an excess of $1 billion. 

Binance.US’ Decision

Binance.US announced the decision in a recent tweet, maintaining that it was a tough but necessary choice for the team. According to the exchange, the decision was influenced by the growing regulatory uncertainty surrounding the crypto scene in the United States.

https://t.co/AZwoBOgsqS has made the difficult decision to exercise its right to terminate the asset purchase agreement with Voyager.

While our hope throughout this process was to help Voyager's customers access their crypto in kind, the hostile and uncertain regulatory climate…

— Binance.US ?? (@BinanceUS) April 25, 2023

Recall that the SEC and New York’s leading regulatory agency and regulators in Texas objected to the Binance.US deal in February. The agencies cited several reasons behind the opposition, including Binance.US’ affiliation with Binance and the security of the Binance.US platform.

Despite the objections, Binance.US continued to push for the deal, attempting to address these concerns in court. Consequently, Judge Michael Wiles dismissed the oppositions, citing them as unfounded. Wiles gave the go-ahead for the acquisition. However, Binance.US has pulled out in light of the recent slew of enforcement actions from US regulators, especially the SEC and CFTC.

How This Affects Shiba Inu

The termination of the acquisition deal indicates that Voyager will continue to liquidate its crypto holdings as initially intended in an attempt to raise liquid funds to make affected customers whole. These holdings include a 3.1 trillion Shiba Inu balance in one of its wallets.

Voyager had been selling off its SHIB holdings and other assets since the start of the year. However, the bankrupt lender had to pause the distribution campaign last month, with 3.1 trillion SHIB ($32.3 million) left. Shiba Inu represents the third single largest holding on the balance sheet, only behind USDC ($129.5 million) and ETH ($72.9 million).

It remains to be seen how this systematic dump will affect the market, although market participants believe the impact will be minimal or nonexistent. Notably, Voyager’s distribution campaign, which began earlier this year, saw up to 5.62 trillion Shiba Inu dumped into the market.