Nascar sponsor files for bankruptcy – Forbes | Vette Leader

When they first entered NASC
R in 2021 it was a pretty big deal. Voyager Digital wasn’t the first cryptocurrency sponsor in esports, but they were the first to go “all in” and become the main sponsor for Landon Cassill in the Xfinity series. They were also the first sponsor to pay for their sponsorship with cryptocurrency.

For Cassill, a longtime cryptocurrency enthusiast adept at guiding people through the sometimes confusing world of crypto and blockchain, it seemed like a match made in sponsorship heaven.

The sponsorship seemed to be working well, as it was announced earlier this year that Voyager Digital would be back for 2022 and would include some races in NASCAR’s top-tier cup series. In fact, the company itself appeared to be doing well, as Voyager Digital reportedly had 3.5 million users and $5.9 billion in assets.

However, all good things must come to an end, and that has never been truer than in the cryptocurrency world. The currency, which only exists electronically, has entered what is known as a “crypto winter.” Cryptocurrencies have lost $2 trillion in value since last year.

This is not the first time the cryptocurrency bubble has burst. It also happened in 2018. But unlike that “crypto winter,” which was largely driven by initial coin offerings that ended in the failure of many companies, this time the downfall is paralleling the stock market crash. This is in addition to other factors including rising interest rates and inflation.

This has led to the failure of several cryptocurrency firms, including Voyager Digital, which filed for Chapter 11 bankruptcy in the Southern District of New York on July 5. For now, the company plans to continue operations, releasing a recovery plan this week and telling users they will get their money back “subject to a reconciliation and fraud prevention process.”

Voyager Digital was also one of the first cryptocurrency companies to be publicly traded, although the Canadian market. On Wednesday, the stock closed at 0.1675 after losing 98.56 percent of its value over the past year.

Part of the filing revealed that the company’s assets include approximately $1.3 billion in crypto assets, plus a $650 million debt owed by Three Arrows Capital (3AC).

MORE FROM FORBESFormer FDIC regulator on how the agency’s investigation into bankrupt crypto brokerage Voyager Digital is progressing

It seems that 3AC may have been the company that fueled Voyager’s demise.

Among other things, Voyager Digital is said to have made enormous unsecured loans to 3AC. For its part, the 3AC hedge fund appears to have defaulted on all of its commitments and its founders are reportedly on the run and not cooperating with authorities over the company’s bankruptcy proceedings. It remains to be seen if Voyager will ever recoup 3AC’s $650 million debt.

In the Terra Luna tray
is also mentioned. Terra is an open source blockchain protocol developed by Terraform Labs. Terra Luna gave “TerraUSD
” an algorithmic stablecoin that also failed, causing the company to collapse.

There might be some hope for the company. KaJ Labs announced that this week it issued a letter of intent (LOI) to Voyager Digital Holdings to acquire the company’s assets. According to LOI, KaJ Labs intends to acquire Voyager Digital Holdings’ remaining qualifying assets, primarily the functional suite of APIs and mobile apps that Voyager Digital has provided to enable people to trade multiple types of digital assets.

What all of this means for the future of NASCAR sponsorship for Cassill and the Kaulig Racing Team is uncertain. The #10 car will be entered with a different sponsor in this weekend’s Xfinity race in New Hampshire and calls and emails to the team have gone unanswered.

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