Crypto market watch: Voyager token’s price spikes
Updated
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%.
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%.
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