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VGX/USD forecast: Can Voyager reverse the downward trend after FTX buyout?

By Alejandro Arrieche

Edited by Georgy Istigechev

16:19, 6 October 2022

Voyager Token (VGX) icon on modern blue color background.
Cryptocurrency exchange FTX acquired the assets of Voyager Digital in late September 2022 – Photo: WindAwake / Shutterstock.com

The native token of Voyager Digital (VGX/USD) has accumulated losses of over 80% in 2022 as the exchange’s bankruptcy and the so-called crypto winter have pushed investors to liquidate their holdings.

However, ever since Voyager announced that it was filing for bankruptcy in July this year, the token’s value has been rising. The price action indicates that an uptrend may be emerging as VGX/USD has registered several highs in the second half of the year.

With Sam Bankman-Fried’s FTX now reportedly acquiring the assets of the demised crypto exchange, can VGX/USD keep rising?

In this article, we share more details about this crypto asset and look at the factors you could potentially include when drafting a plausible VGX/USD forecast for this year and beyond.

What is VGX/USD?

VGX/USD is a trading pair that indicates the value of the native token of Voyager Digital in US dollars. 

The token was created by the firm to reward customers for their loyalty. Before the exchange went bankrupt, the platform’s users could stake VGX to earn annual rewards of at least 7% – also known as staking rewards – and enjoy other benefits such as crypto-back rewards and bonuses for referring new customers to the platform.

The extent of the rewards that VGX holders could receive varied depending on how many tokens they owned. There were three tiers for VGX investors, going from the Adventurer tier (holders of 500 to 4,999 VGX tokens) to the Navigator tier (investors who held over 20,000 VGX).

The VGX 2.0 token is an ERC-20 cryptocurrency created after Voyager acquired French crypto exchange LGO. This crypto asset was introduced to merge the two platforms’ native assets.

As of 6 October 2022, the VGX/USD price stood at $0.533, according to data from CoinMarketCap. Market capitalisation was $148m. There were 278.48 million VGX tokens in circulation.

VGX/USD price history: crypto winter and bankruptcy lead to the token’s collapse

The historical price of VGX/USD dates back to August 2021, when the new VGX 2.0 was successfully listed on multiple centralised exchanges.

The price of the token surged, peaking at around $6 in November 2021. It started to decline as macroeconomic headwinds weighed on the valuation of all crypto assets.

VGX/USD ALL-TIME PRICE CHART

The implosion of the Terra ecosystem and its native tokens, Luna and UST, in May 2022 led to a crisis of confidence in the crypto market that further accentuated the downtrend.

Voyager filed for bankruptcy only a few months after the collapse of the Terra ecosystem. One of its institutional clients, Three Arrows Capital (3AC), failed to honour a margin call. Voyager claims 3AC owes it $650m.

All of these developments have negatively affected the performance of the VGX/USD trading pair, which has recorded year-to-date losses of nearly 82%.

However, on 27 September, Voyager announced that FTX US, the American subsidiary of the company owned by Bankman-Fried, won the bid to acquire the firm’s assets for $1.42bn. The bid was approved by the Official Committee of Unsecured Creditors (UCC).

Voyager claims that the bid was selected after a thorough analysis of over 90 different proposals, and that its merits surpassed those of the restructuring proposal the firm filed with the court to be able to reorganise its operations on its own.

The asset purchase agreement should be formally signed on 19 October. The exchange’s customers will have the chance to approve the bid by submitting their votes shortly afterwards.

The completion of this acquisition could be a positive catalyst for VGX/USD. It could affect the market’s baseline VGX/USD forecast.

Latest news and price drivers for VGX/USD

News concerning Voyager Digital and VGX/USD is associated with the bid submitted by FTX US for the acquisition of the exchange’s assets for $1.42bn.

ETH/USD

3,502.27 Price
-0.190% 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

170.15 Price
-0.120% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652

BTC/USD

66,712.30 Price
-0.480% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

XRP/USD

0.60 Price
+3.010% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

It is still unclear what FTX US will do with the outstanding VGX tokens or if Voyager Digital will remain a standalone company. 

A Twitter thread that outlined a proposal made by Bankman-Fried to Voyager back in July this year may provide a glimpse of what the company is planning.

SBF proposed to give customers back 100% of the assets that Voyager still had after 3AC defaulted on its loan, avoiding a potentially lengthy bankruptcy process that could drain the firm’s reserves and leave customers with less than what the company had in its coffers at that time.

The proposal was not approved. SBF may allow customers to access whatever is left. They may even retain a claim against the company if the funds that 3AC owes it are recovered at some point, either partially or entirely.

Demand for VGX/USD could depend on the Voyager platform’s usage and credibility. Now that FTX US is taking over, investors may regain some of their lost confidence in the token, assuming that it will continue to trade as is. These are things to consider when drafting a VGX/USD prediction.

VGX/USD forecast: 2022 – 2030

According to predictions from Wallet Investor, a third-party forecasting service that uses algorithms to analyse the price trend of multiple assets, the baseline VGX/USD forecast in the short term is bearish, based on an analysis of its historical performance and various technical indicators. 

The algorithm predicts that the price could drop to a range between $0.30501 and $0.5098 within the next 14 days or so.

Meanwhile, the following are some of Wallet Investor’s mid-term and long-term predictions for the VGX cryptocurrency:

VGX/USD forecast for 2022: $0

VGX/USD forecast for 2025: $0

VGX/USD forecast for 2030: $0

Another algorithm-powered forecasting service, Gov.Capital, predicted that the value of VGX/USD will drop to $0.40 within the next 14 days. These are the algorithm’s predictions for the mid and long term:

VGX/USD forecast for 2022: $1.408

VGX/USD forecast for 2025: $15.68

VGX/USD forecast for 2030: not provided

It appears that Wallet Investor’s estimates expect that the token will either cease to exist or lose all of its value after the acquisition of Voyager is completed. Meanwhile, estimates from Gov.Capital see a bright future for the VGX/USD pair.

None of these forecasts should be considered a recommendation to invest in VGX/USD.

Investors are strongly encouraged to perform adequate due diligence before making any investment decision. Remember that past performance is not an adequate indicator of future results. And never invest or trade more than you can afford to lose.

FAQs

Why has VGX/USD been rising?

The value of the VGX token has been rising since July 2022 after the company announced it was filing for bankruptcy. Investors may have believed that this could lead to an acquisition of Voyager’s assets by a third party – something that recently happened as FTX US won the bid for the firm in late September.

Will VGX/USD go up or down?

According to estimates from Wallet Investor, the value of VGX/USD is expected to decline to $0 in the mid-term. Predictions from Gov.Capital see the value of the token rising significantly within the next one to three years.

Remember that analysts and algorithm-based forecast websites can and do get their predictions wrong. Always carry out your own research before making an investment or trading decision. And never invest or trade more than you can afford to lose.

When is the best time to trade VGX/USD?

There is no good or bad time to trade VGX/USD or any other asset for that matter – this particularly applies to cryptocurrencies, as they are available to trade 24/7. Traders and investors must analyse the price action and other types of signals to determine if the value of the asset may be poised to move lower or higher in the future and trade accordingly.

Is VGX/USD a buy, sell, or hold?

The estimates provided by Wallet Investor for VGX/USD indicate that the crypto asset is a ‘sell’ as its price is expected to drop to $0.

However, predictions from Gov.Capital see the value of the token rising significantly within the next one to three years, meaning that the crypto asset is considered a ‘buy’. 

Remember that analysts and algorithm-based prediction websites can and do get their forecasts wrong. Investors are encouraged to perform adequate due diligence before making an investment decision. Never invest or trade more than you can afford to lose.

 

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