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Crypto market watch: Voyager token’s price spikes

By Monte Stewart


Updated

Coin and chart image
The Voyager token's price spiked on Wednesday as the cryptocurrency market downturn continued. - Photo: Shutterstock

Troubled crypto lender Voyager Digital saw its token’s price spike on Wednesday as the cryptocurrency market downturn continued.

The VGX token was up 170% around the time that conventional markets closed. (All figures based on CoinMarketCap data. Most other altcoin prices fell while some were hit-and-miss.

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VGX to USD

Accounts frozen

Debt-ravaged Voyager Digital froze customers’ accounts last week, blocking withdrawals and trades on its platforms. The company’s troubles are largely linked to its unrecovered $650m (£

547m) loan to distressed crypto hedge fund operator Three Arrow Capital.

Voyager has applied for Chapter 11 bankruptcy in the US and filed a proposed restructuring plan with the New York court managing the case. But VGX trading is still permitted on other cryptocurrency exchanges and platforms.

Voyager’s proposed restructuring plan calls for Voyager Digital account holders to be compensated with a pro-rated combination of VGX coins that the company still has on deposit, stock in the reorganized company, other Voyager coins (VGX), and a portion of funds recovered from distressed crypto hedge fund operator Three Arrows. But the outcome will likely vary from the proposed plan.

CRV to USD

Curve shoots up

Daniel Besikof, a bankruptcy lawyer with Loeb & Loeb in New York recently told Capital.com that Voyager Digital is not planning to return everybody’s crypto assets in full. And, retail investors will have to do extra homework on companies holding their cryptocurrency in the wake of Voyager Digital’s demise.

The Curve DAO token (CRV) was another outlier as it shot up 15%. Meanwhile, decred (DCR) and serum (SRM) both rose about 10%.

BTC/USD

66,806.55 Price
-0.930% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

DOGE/USD

0.13 Price
-2.950% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

ETH/USD

3,489.46 Price
-0.990% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

SOL/USD

172.64 Price
-1.130% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652

DCR to USD

Old crypto

One of the world’s oldest cryptocurrencies, decred copied bitoin’s code and modfied it as a means of empowering and rewards holders who contributed changes to the network, according to Kraken. Decred deploys a hybrid-consensus model that utilizes both proof-of-work and proof-of-stake staking models to increase the token’s value.

Many other cryptocurrencies deploy either the proof-of-work or proof-of-stake model, but usually not both.

 

Bitcoin among competitors

Decred competes with bitcoin, dogecoin (DOGE) and litecoin. Bitcoin was up slightly on Wednesday but stayed slightly below $20,000, which is viewed as a key benchmark of price stability.

Litecoin was also up slightly but DOGE was down marginally.

Ethereum (ETH) was up about 3%.

Markets in this article

CRV/USD
CRV/USD
0.3006 USD
-0.009 -3.040%
SRM/USD
SRM/USD
0.0336 USD
0.001 +3.170%
ETH/USD
Ethereum / USD
3489.46 USD
-35.05 -0.990%

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Related reading

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

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