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VGX token rises 11% as FTX wins bid to buy Voyager Digital assets

By Raphael Sanis

Edited by Charlie Mellor

09:51, 27 September 2022

The VGX coin in front of a price graph
VGX surged by 11% after it was announced FTX won the auction for Voyager’s assets – Photo: Shutterstock

After two weeks and numerous rounds of bidding “in a highly competitive auction process”, FTX has successfully bought the assets of Voyager Digital.

The cryptocurrency exchange’s bid was worth roughly $1.422bn, according to a statement. It consisted of the fair market value of the crypto lender’s assets and $111m of “incremental value”.

As a result, the voyager token (VGX) has seen a bullish sentiment from investors.

VGX to USD

VGX’s breakout

VGX was especially vulnerable to the 2022 bear market and has been falling throughout the year. This was fuelled even further in early July when Voyager filed for protected chapter 11 bankruptcy. It dropped to a 52-week low of $0.1409 just over a week later.

Surprisingly, VGX has seen multiple surges since its bankruptcy filing. On 13 July, it rocketed to $0.94, this was as a court ordered the seizure of Three Arrows Capital’s assets, a company that Voyager had exposure to and partially blamed its ultimate bankruptcy over.  

It managed to climb even higher at the beginning of September, following the takeover interest from numerous high-profile cryptocurrency companies. As well as FTX, these included Binance (BNB) and Coinbase (COIN).

DOGE/USD

0.16 Price
+6.150% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

BTC/USD

69,359.15 Price
+5.050% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

BCH/USD

510.15 Price
+4.180% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50

XRP/USD

0.54 Price
+4.370% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

After FTX won the bid, VGX reached a high of $0.75 on 27 September, according to CoinMarketCap, an 11% rise from the $0.67 mark it started the day.

At the time of writing, VGX was trading at $0.69, but it was still up around 40% over the past month.

Voyager’s bankruptcy

The cryptocurrency lender filed for bankruptcy on 5 July. In a statement it said this was down to “the prolonged volatility and contagion in the crypto markets over the past few months, and the default of Three Arrows Capital (3AC) on a loan from the company’s subsidiary, Voyager Digital”.

While FTX bought the assets, the recent statement revealed that the Three Arrows Capital debt will remain with Voyager. However, any funds that are recovered will be distributed to “the estate’s creditors”.

Voyager also clarified that investors who lost funds as a result of the bankruptcy can still file a claim. The auction has not changed this process and the deadline remains 3 October 2022.

Markets in this article

COIN
Coinbase Global Inc (Extended Hours)
224.69 USD
16.4 +7.920%
BNB/USD
Binance Coin / USD
596.91 USD
15.13 +2.630%

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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.
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